Actuarial Finance Derivatives Quantitative Models And Risk Management 1st Edition Boudreault by Boudreault, Mathieu; Renaud, Jean-françois 9781119137009, 9781119137016, 9781119137023, 1119137004, 1119137012, 1119137020 instant download after payment.

This book focuses on the mathematical models and techniques used in actuarial finance for the pricing and hedging of actuarial liabilities exposed to financial markets and other contingencies. The classical theory of financial mathematics is discussed while covering additional topics of interest for actuaries.Actuarial applications play a pivotal role and actuarial content is integrated throughout. Specifically, insurance liabilities and financial derivatives are described in the first chapters, in addition to valuation principles that differ in financial and insurance markets. Classical books in financial mathematics focus on pricing options and futures in absence of arbitrage whereas actuarial finance mainly involves valuation of liabilities tied to financial markets and risk management using derivatives. Therefore, this book devotes entire chapters or sections to topics of greater importance for actuaries such as the management of mortality risk and other non-tradable risks in the industry;valuation and reserving modern insurance liabilities that involve understanding the differences between the real-world and risk-neutral probability measures; and stochastic interest rates indiscrete- and continuous-time given the long-term nature of insurance liabilities. The authors clearly differentiate the real-world and risk-neutral probability measures and also provide exercises, select solutions, and R data sets for additional learning.