Principles of Financial Engineering (3rd Edition)

Download Principles of Financial Engineering (3rd Edition) written by Robert Kosowski, Salih N. Neftci in PDF format. This book is under the category Finance and bearing the isbn/isbn13 number 123869684/9780123869685. You may reffer the table below for additional details of the book.


SKU: 097e26b2ffb0 Category: Tag:



Robert Kosowski, Salih N. Neftci


Academic Press




867 pages









Book Description

This book is the third edition of Principles of Financial Engineering (PDF) is a textbook that has received very positive reviews and focuses on the difficult and rapidly developing field of financial engineering. This revised and expanded third edition focuses on the “engineering” aspects of financial engineering rather than the mathematics that provide its foundation. Rather than detailing the actual financial tools themselves, it focuses on demonstrating how they might be utilized to achieve a specific objective. It places more of an emphasis on the engineering aspects of derivatives (and how to develop them) in comparison to their pricing (and how they operate) in connection to the financial markets; other instruments; and the practices of the financial market.

This book walks readers through the process of developing various financial tools and discusses how those tools can be combined to accomplish a variety of objectives. Examples taken from actual life are used to illustrate the applications. There are three new chapters on financial engineering presented here, covering topics such as commodity markets, financial engineering applications in hedge fund strategies, structural models of default, correlation swaps, contingent convertibles, capital structure arbitrage, and how to incorporate counterparty risk into the pricing of derivatives. This book, which is situated in the middle ground between intuition, actual events, and financial mathematics, can be utilized to find solutions to problems pertaining to taxation, risk management, regulation, and most importantly pricing. The textbook is improved by the inclusion of a solutions manual, which provides supplemental cases and answers to exercise questions.

Kosowski’s Principles of Financial Engineering, now in its third and most recent edition, is an excellent resource for quantitative analysts working in financial institutions such as banks and investment firms, as well as other professionals working in the financial industry. In addition, graduate students pursuing degrees in financial mathematics or financial engineering are strongly encouraged to read it.



  • The solutions manual complements the textbook by providing additional case studies and answers to the corresponding exercises.


  • Instead of explaining how these instruments should behave, clarifications, additions, and illustrations are included throughout the volume to show how they actually behave.


  • The third edition adds new material on a variety of topics, including, but not limited to: financial engineering in commodity markets; financial engineering applications in hedge fund strategies; correlation swaps; capital structure arbitrage; contingent convertibles; structural models of default; and how to incorporate counterparty risk into derivatives pricing. These topics are covered in three new chapters in the third edition.




This highly praised textbook on the dynamic and intricate field of financial engineering has been updated by a best-selling author.

“This textbook has quickly become a modern classic of financial engineering; as broad in coverage as it is deep in content; and the addition of Kosowski brings another dimension of academic rigor and practical relevance to Neftci’s impressive pedagogical legacy.” — “This textbook has quickly become a modern classic of financial engineering; as broad in coverage as it is deep in content.” — Andrew W. Lo; Massachusetts Institute of Technology Sloan School of Management

“It has brought a smile to my face to see that Professor Kosowski has brought this timeless textbook up to date to include financial engineering after the crisis. This compelling combination of timeless concepts and modern insights makes for a read that you won’t be able to put down. — The New York University, Peter Carr, and Morgan Stanley



PLEASE TAKE NOTICE That this listing is just for the PDF version of the ebook “Principles of Financial Engineering, Third Edition.” There are no access codes provided.


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