MTH 4500: Introductory Financial Mathematics
Errors in the book
Book: Mathematics for Finance: An Introduction to Financial Engineering by Marek Capinski and Tomasz Zastawniak (Springer Undergraduate Mathematics Series, Springer; 2nd ed. 2011 (November 25, 2010), ISBN-10: 0857290819, ISBN-13: 978-0857290816)
- Page 64, Line -3: Formula 3.12 should be \(c_{12}^2\) instead of \(c_{12}\) in the numerator.
- Page 71, Line -7: Should be \(\sigma_i^2\) instead of \(\sigma_i\).
- Page 213, Line -3: Should be \(u(t,x)=e^{-r(T-t)}\cdots\) instead of \(u(t,x)=e^{r(T-t)}\cdots\).
- Page 305, solution 3.14: \(w=[-0.031193948, 1.005069017, 0.026124932]\), \(\mu_M=0.099578882\), \(\sigma_M=0.049212952\).
- Page 318, solution 8.2: The last integral should contain the term \(e^{-\frac1{2\sigma^2t}\left(x-\sigma^2t\right)^2}\) instead of
\(e^{-\frac1{2\sigma^2t}\left(x-\frac{\sigma}{\sqrt{2t}}\right)^2}\)
.