Computational finance deals with the mathematics of computer programs that realize financial models or systems. This book outlines the epistemic risks associated with the current valuations of different financial instruments and discusses the corresponding risk management strategies. It covers most of the research and practical areas in computational finance. Starting from traditional fundamental analysis and using algebraic and geometric tools, it is guided by the logic of science to explore information from financial data without prejudice. In fact, this book has the unique feature that it is structured around the simple requirement of objective science: the geometric structure of the data = the information contained in the data.

Contents:

• A Scientific Perspective
• Capital Budgeting and Analytic Formulas
• Fundamental Security Valuation
• Analysis of Inexact Data I
• Analysis of Inexact Data II
• Optimal Portfolio Formation
• Systematic Financial Risk Analysis
• Complete Valuation and Dynamic Risk Theory
• Option Pricing I
• Option Pricing II
• Bond Portfolio Valuation and Management
• Forwards and Futures
• Swaps
• Multi-Currency Investments and Exact Performance Attribution

"We recommend the book to all researchers in economics interested in computational finance methods, and also to probabilists and statisticians interested to compare the above methodology with their heavy machinery of stochastic processes."