This textbook is an elementary introduction to the key topics in mathematical finance and financial economics - two realms of ideas that substantially overlap but are often treated separately from each other. Our goal is to present the highlights in the field, with the emphasis on the financial...

Financial economics is a fascinating topic where ideas from economics, mathematics and, most recently, psychology are combined to understand financial markets. This book gives a concise introduction into this field and includes for the first time recent results from behavioral finance that help...

Wie kommt es, dass in einer Ökonomie, in der jeder nach seinem eigenen Nutzen strebt, kein Chaos herrscht, sondern sich ein Zustand des Gleichgewichts einstellt? Diese verblüffende Frage beantwortete Adam Smith mit der Metapher der 'unsichtbaren Hand'. Seine Antwort wurde zur Initialzündung...

Foundations -- Decision Theory -- Financial Markets -- Two-Period Model: Mean-Variance Approach -- Two-Period Model: State-Preference Approach -- Multiple-Periods Model -- Advanced Topics -- Theory of the Firm -- Information Asymmetries on Financial Markets -- Time-Continuous Model