An Introduction to Financial Mathematics: Option Valuation, Second Edition is a well-rounded primer to the mathematics and models used in the valuation of financial derivatives. The book consists of fifteen chapters, the first ten of which develop option valuation techniques in discrete time, the last five describing the theory in continuous time. The first half of the textbook develops basic finance and probability. The author then treats the binomial modal as the primary example of discrete-time option valuation. The final part of the textbook examines the Black-Scholes model. The book is written to provide a straightforward account of the principles of option pricing and examines these principles in detail using standard discrete and stochastic calculus models. Additionally, the second edition has new exercises and examples, and includes many tables and graphs generated by over 30 MS Excel VBA modules available on the author's webpage https://home.gwu.

edu/˜hdj/. Features, The text is designed for a first course in financial mathematics, focusing on methods of options valuation. Excel VBA programs found on the author's website may be used for additional learning, Several pricing models are used to determine the fair market value of an option. The Black-Sholes model is the most widely used and the book directly addresses this need, The new edition includes many revisions designed to improve readability and clarity, The Second edition features new examples and exercises to help readers better understand the book's core concepts.