- Here is the Table of contents
- By popular demand, here is the bibliography.

Here is the cover blurb:

The book has 78 line diagrams and 202 exercises. Hints or answers are included for all exercises. The answers are much more extensive in the second edition; a large fraction of the problems now have complete solutions. In addition, a large number of extra exercises and examples have been added.

Although the price is low, the book is a

Get up to date price information from bublos.com UK US .

Buy from amazon.co.uk

Buy from amazon.com

I have now created a bulletin board to make it easy for readers to ask questions and discuss details in the book.

Here are some extra problems fitted to the contents of the book. Solutions for these will not be provided. Last updated Sep 2013.

The sequel More mathematical finance was released in September 2011.

Here is a partial errata -- mainly silly typos but a few not quite correct formulas too. These errors were corrected in the third printing.

Here is the errata for the third and fourth printings. These should be corrected in the fifth printing.

Here is the errata for the fifth (and higher) printings.

Here is the errata for the second edition, first printing. Please note that CUP decided to undo many of the typo fixes from earlier printings so many typos from the first edition have reappeared.

Here is the errata for the second edition, second printing. Almost all of these are also wrong in the first printing.

Here is the errata for the second edition as of November 2011. You can assume that these were wrong in any copy from before then.

Here is the errata as of March 2017.

Reviews for the second edition

"the clarity of the exposition makes the book a pleasure to read, while its orientation towards practical application will be helpful also to those who want to understand financial markets. "

It is the first book on the list of books recommended by QuantLib.

'The book is intended as an introduction for a numerate
person to the discipline of mathematical finance. In this, Mark Joshi succeeds
admirably … an excellent starting point for a numerate person in the field
of mathematical finance.'

Very few books provide a balance between financial theory and practice. This book is one of the few books that strikes that balance. ... financial mathematics students will benefit a lot from the way the book is organized. At the end of each chapter there is a summary of key points discussed followed by a series of exercises. Hints and answers to exercises are provided in Appendix D. In Appendix A, the author provides definitions of the more commonly used terms and jargon in mathematical finance. In Appendix B there are 16 computational projects intended to equip the reader with some hands-on experience in implementing financial models. The projects have a wide range in scope from exotic option pricing using Monte Carlo to implementing pricers for jump-diffusion stochastic volatility, and variance gamma models. This book is well priced and certainly a good addition to your collection of financial mathematics book.

'The author allows the reader as often as possible to get an intuition for the models and concepts. Helpful information is given on how to use and implement these models and concepts in practical terms. This practice-orientation makes this book different from others belonging to this category … the text is also well suited as a textbook for a quantitative-oriented introductory course on finance at universities or other academic institutions … one can say that this introductory book in offering a well balanced and up-to-date introduction to the theory and practice of mathematical finance

The book has been very nicely produced by Cambridge University Press. I
would certainly recommend that anyone teaching an introductory or intermediate
course on this topic seriously consider this book as a potential course text.'

Mark Joshi’s “The Concepts and Practice of Mathematical Finance” is ideal for those who want to learn or deepen their knowledge about Quantitative Finance. Not too elementary and childish to the point of being useless, and not too dense and complicated to the point of being useless. It’s right in the middle and therefore useful.

The breadth of the book particularly impressed me. It went from theoretical to practical, while covering implementation-related issues. It makes concepts such as Martingales, Measures and Numéraires look so natural and easy. Pricing Quantos or Spread-Options becomes an innate result of these concepts.

He then writes on the practicalities. In fact this word “practical” keeps coming back. But that is precisely the point. Theory is elegant yes, but what can it actually do for you? That is what he focuses upon.

Dariusz Gaterek (the "

Riccardo Rebonato on back cover:

Player on Wilmott

I'd say, mj's is about the best balance you can get at the moment. Chapter 6 is worth paying a premium by itself

Its a mixture of hull, Taleb and Baxter and Rennie with some of Bjork thrown in and combined with a strong computing element to it.

Think of mj's book as the mortar putting the bricks together and you'll see how invaluable a book it is

From Chapter 6 onwards,...the book is absolute masterpiece

Chapter 1-5 set the groundwork

Kenzo on Wilmott

Friul on Wilmott

1 - Mark tries to communicate the intuition behind the maths in each of the topics he deals with, he draws connections and, in some cases, mentions the practicalities implied by them. Nevertheless he is rigorous without being cumbersome (... it’ an introductory text after all);

2 - He deals with a quite wide range of topics, probably much wider that the one other peer books deal with, giving the reader a quite comprehensive snapshot of what the key issues in mathematical finance are in terms of pricing methods, products and issues to be faced when choosing a model.

My highlights in the book are the chapter on jumps and the one of pricing via replication.

From Financial
Engineering News

* What impressed me most deeply, was the clearness
with which he developed the concepts and results, and the distinction
of results which are always true (unless there are dividends,
you never exercise an American call option) and results which
are true only under certain model assumptions. When it is published,
it will be a ‘strong buy.*

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