Lecture Notes in Finance 2: Bonds, Options and Interest Rate Models

An open textbook that builds option pricing from the binomial model to Black-Scholes, then shows how to compute prices with numerical methods. Includes exercises and computational examples throughout.

Arash Fahim

Lecture notes on financial derivatives: forwards, futures and options, payoff functions, the binomial tree and the Black-Scholes model. A rigorous and complete course for math students.

I-Liang Chern

Lecture notes that introduce mathematical finance through the binomial model: portfolios, arbitrage, martingales and the pricing of contingent claims. They finish with the Black-Scholes formula as the limit of the discrete model.

Clare Wallace, Durham University

A short, readable introduction to how quants price derivatives. It explains arbitrage, the binomial model and the ideas behind Black-Scholes without heavy machinery.

Sandeep Juneja

Master's level notes on no-arbitrage pricing in discrete time, including markets with transaction costs and other frictions. A concise path into the fundamental theorem of asset pricing.

Emmanuel Lépinette