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Introduction to Stochastic Calculus for Finance by Dieter Sondermann offers a pedagogical approach to stochastic calculus, emphasizing its applications in financial contexts. The book begins with an elementary treatment of stochastic calculus, following the pathwise approach introduced by Föllmer, which allows for the development of Itô's calculus as an exercise in real analysis. This method provides a clear and intuitive understanding of stochastic processes, making the material accessible to readers with a background in elementary real analysis and basic probability theory. The text covers essential topics such as option pricing using martingale methods, the term structure of interest rates within the Heath-Jarrow-Morton framework, and the Libor market model. Designed for both students and professionals, this book serves as a concise introduction to the mathematical tools required for advanced finance in continuous time.

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245: $a: Introduction to Stochastic Calculus for Finance
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082: $a:
100: $a: Dieter Sondermann
650: $a: Mathematical Finance
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250: $b: Springer
250: $c: 2006
020: $a: 978-3540348375
300: $a: 144