Financial Mathematics

Financial Mathematics. Stochastic models for asset prices, derivatives, and risk. The literature on financial mathematics divides naturally along several axes: the foundational structures that organise the subject, the techniques that drive proofs and computations, the questions about classification or representation that animate current research, and the bridges to neighbouring areas of mathematics and science. The references below trace those axes through the canonical textbook treatments and recent technical contributions.

Foundations and canonical references

The standard treatments of financial mathematics approach the subject from complementary angles. Shreve, Stochastic Calculus for Finance II: Continuous-Time Models (2004) is the anchor reference for the subject and lays out the core definitions, theorems, and worked examples that practitioners return to. Bjork, Arbitrage Theory in Continuous Time (2009) gives a parallel, more proof-oriented exposition of the same material and is widely used as a graduate text. Hull, Options, Futures, and Other Derivatives (2017) offers an alternative presentation that complements the primary references and is useful for triangulating definitions and proof techniques.

Open methodological questions for financial mathematics include sharpening the bridges between foundational theory and computational practice, extending classical results to broader or more structured settings, and integrating the techniques surveyed above with adjacent mathematical disciplines. The references listed in this page are the entry points that current work builds on.