We have compiled the list of Best Reference Books on Financial Engineering subject. These books are used by students of top universities, institutes and colleges. Here is the full list of best books on Financial Engineering along with reviews.
Kindly note that we have put a lot of effort into researching the best books on Financial Engineering subject and came out with a recommended list of best books. The table below contains the Name of these best books, their authors, publishers and an unbiased review of books on “Financial Engineering” as well as links to the Amazon website to directly purchase these books. As an Amazon Associate, we earn from qualifying purchases, but this does not impact our reviews, comparisons, and listing of these top books; the table serves as a ready reckoner list of these best books.
List of Financial Engineering Books with author’s names, publishers, and an unbiased review as well as links to the Amazon website to directly purchase these books.
1. Financial Engineering
|1. “Financial Engineering” by Marshall
“Financial Engineering” Book Review: Studying the important field of financial engineering, this book explores its products, growth, conceptual tools, instruments, strategies, processes and future directions. Starting from the basics of financial engineering to the intricate processes of creating new financial instruments, this book determines both conceptual and practical frameworks for understanding the field.
|2. “Financial Engineering for Low-Income Households” by Bindu Ananth
“Financial Engineering for Low-Income Households Book Review: This book is a modified collection of articles that focuses on using financial engineering- which is a versatile field that utilises technical methods from the fields of finance, mathematics and economics-to design financial services for low-income households. This manual gives the reader an understanding of multiple risk-reward trade-offs faced by low-income households and how principles of financial engineering are used to understand financial and non-financial assets, including human capital, insurance, annuities and loans. It provides numerous illustrations, caselets, and exercises to improve learning and helps in developing an understanding of the relative concepts.
|3. “Principles of Financial Engineering” by Neftki
“Principles of Financial Engineering” Book Review: This book focuses on financial engineering and the use of derivative instruments to the standard introductions to derivative pricing and financial mathematics. It includes five chapters on structured products and credit derivatives and an expanded collection of questions and exercises. It can be used as a reference text for financial engineering practitioners and academics and to solve problems in risk management, taxation, regulation, and pricing. It’s importance to structured products engineering, helps readers in creating financial assets in static and dynamic environments.
| 4. “Project Financing: Asset-Based Financial Engineering” by John D Finnerty
“Project Financing: Asset-Based Financial Engineering” Book Review: This book is written to reflect current conditions of the financial environment using updated examples and case studies, and explains how to use the given techniques for project financing, how to prepare the financial plan, assess the risks, design the financing mix, raise the funds, etc. It covers the financing of sustainable projects as well as Sharia-compliant (Islamic) project financing and it discusses financial modeling and international debt financing, along with analyzing the shortcomings of unsuccessful project financing attempts.
|5. “Engineering Economics and Financial Accounting” by R Kesavan and C Elanchezhian|
| 6. “Monte Carlo Methods in Financial Engineering: Volume 53 (Stochastic Modelling and Applied Probability)” by Paul Glasserman
“Monte Carlo Methods in Financial Engineering” Book Review: This book is divided into three parts. It is a complete text for those who are interested in implementing Monte Carlo methods in a financial context. It develops the use of Monte Carlo methods in finance and it also uses simulation as a vehicle for presenting models and ideas from financial engineering. This book explains the development of the fundamentals of Monte Carlo methods, the foundations of derivatives pricing, and the implementation of important models used in financial engineering. The book includes topics such as estimating price sensitivities, valuing American options, and measuring market risk and credit risk in financial portfolios.
| 7. “Numerical Optimization (Springer Series in Operations Research and Financial Engineering)” by Jorge Nocedal and Stephen Wright
“Numerical Optimization” Book Review: This book provides an extensive description of methods in continuous optimization. It includes a thorough study of nonlinear interior methods and derivative-free methods for optimization. It also includes practical methods, as well as various illustrations and exercises. This book can be utilised in the field of engineering, operations research, mathematics, computer science, and business.
|8. “Credit Derivatives and Synthetic Structures: A Guide to Instruments and Applications (Wiley Series in Financial Engineering)” by Janet M Tavakoli|
| 9. “Schaum’s Outline of Advanced Mathematics for Engineers and Scientists (Schaums’ Outline Series)” by Murray R Spiegel
“Schaum’s Outline of Advanced Mathematics for Engineers and Scientists (Schaums’ Outline Series)” Book Review: This Outline provides various practice exercises to solidify the mechanics of working with advanced math concepts. It is a supplemental resource for engineering students in graduate level courses, scientists, economists,and every doctoral student. Topics in this book include- differential equations; linear differential equations, Laplace transformations, vector analysis, multiple, line and surface integrals with the theorems, Fourier series and integrals and gamma and beta functions.
| 10. “Perturbation Analysis of Optimization Problems (Springer Series in Operations Research and Financial Engineering)” by J Frederic Bonnans and Alexander Shapiro
“Perturbation Analysis of Optimization Problems (Springer Series in Operations Research and Financial Engineering)” Book Review: This book discusses general results of local optimality and computation of the expansion of value function and approximate solution of optimization problems, along with their application to various fields, like physics, economics, mechanics, statistics, finance. It can be used by research professionals, and graduate students at an advanced level. The progressive setting of this book allows the consideration and analysis of problems like semi definite and semi infinite programming, optimal control and variational inequalities.
2. Financial Mathematics
|1. “Investment Science” by D G Luembergar
“Investment Science” Book Review: This book discusses the basic ideas behind the science of investment. The basic concepts of investment problems are underlined in this book. In terms of mathematical content the book also explores where the field might be going in the future and goes much further. End-of-chapter practice is also included. This book will be useful for Business schools students.
|2. “An Introduction to Mathematical Finance” by S Ross
“An Introduction to Mathematical Finance” Book Review: The Black-Scholes theory of options and finance as the time value of cash is discussed in this book. It also involves mean variance analysis, optimal portfolio selection, and the pricing model of capital assets. This book will be beneficial for professional traders and undergraduates studying the basics of finance.
|3. “Stochastic Process and Financial Markets” by J C Parikh
“Stochastic Process and Financial Markets” Book Review: This book provides an introduction to the basic concepts and mathematical foundations for the financial market dynamics. It also focuses on stochastic processes and the way in which they provide the fundamental basis for market modelling. This book will be useful for undergraduates studying the basics of finance.
|4. “Financial Mathematics” by Shahi|
| 5. “Introductory Financial Mathematics” by Suresh Chandra
“Introductory Financial Mathematics” Book Review: This book includes an introduction to financial mathematics. It covers different topics, such as optimal trading strategies, credit scoring models and credit risk management for the portfolio. This book will be beneficial for undergraduates studying the basics of finance.
|6. “An Introduction to the Mathematics of Financial Derivatives” by Hirsa|
| 7. “Schaum’s Outline of Mathematics of Finance, Second Edition (Schaum’s Outline Series)” by Robert Brown and Petr Zima
“Schaum’s Outline of Mathematics of Finance, Second Edition (Schaum’s Outline Series)” Book Review: This book provides information in an easy-to-follow, theme-by-topic style. It includes functional issues with complete explanation and also allows for an in-depth analysis of procedures and applications.
| 8. “Financial Mathematics” by A Lenin Jothi
“Financial Mathematics” Book Review: This book discusses a detailed coverage of mathematics for finance topics. There are 27 chapters in the book and each chapter contains illustrations, resolved examples and exercises in self-practice. This book will act as a guide for MBA, BBA ,MBA, M.Com. (Banking), M.Com. (Insurance) and B.Com. students.
| 9. “A Primer For The Mathematics Of Financial Engineering” by Dan Stefanica
“A Primer For The Mathematics Of Financial Engineering” Book Review: This book addresses the strong mathematical framework needed to understand quantitative models. It includes integral limits, extensions of Taylor series convergence and approximations of finite differences. Stirling’s formula, polar coordinates and Newton’s method for higher dimensional problems are also explained in the book. This book will be useful for undergraduates studying finance engineering.
| 10. “Financial Mathematics” by Clarence H Richardson
“Financial Mathematics” Book Review: This book discusses a detailed coverage of mathematics for finance topics. It includes various topics such as considered interest, discount, bond valuation, depreciation and insurance. This book will act as a guide for MBA, BBA ,MBA, M.Com. (Banking), M.Com. (Insurance) and B.Com. students.
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