This book gives a systematic introduction to the basic theory of financial mathematics with an
emphasis on applications of martingale methods in pricing and hedging of contingent claims
interest rate term structure models and expected utility maximization problems. The general
theory of static risk measures basic concepts and results on markets of semimartingale model
and a numeraire-free and original probability based framework for financial markets are also
included. The basic theory of probability and Ito's theory of stochastic analysis as
preliminary knowledge are presented.
