Abstract
After introducing the volatility of stocks as a central feature, the concepts of hedging, short selling, and discounting are introduced, as well as future contracts and options as functions—derivatives—of the underlying stocks. Before discussing the various participants in the ensuing markets, the efficient market hypothesis and some simplifying assumptions, in order to make the theoretical treatment feasible, are covered.
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Such as “fiat lux”—let there be light (Genesis 1:3).
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Ziemann, V. (2021). Concepts of Finance. In: Physics and Finance. Undergraduate Lecture Notes in Physics. Springer, Cham. https://doi.org/10.1007/978-3-030-63643-2_2
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DOI: https://doi.org/10.1007/978-3-030-63643-2_2
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Publisher Name: Springer, Cham
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Online ISBN: 978-3-030-63643-2
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