{"product_id":"hydrodynamics-of-markets-hidden-links-between-physics-and-finance-hardback-9781009503112","title":"Hydrodynamics of Markets; Hidden Links between Physics and Finance (Hardback) 9781009503112","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eHydrodynamics of Markets\u003c\/font\u003e\u003cbr\u003e\r\n\u003cfont size=\"5\"\u003eHidden Links between Physics and Finance\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cem\u003eThe Kelvin wave formalism is used to solve numerous problems in physics and financial engineering, including several open ones.\u003c\/em\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003cp\u003e\u003cfont size=\"4\"\u003eAlexander Lipton (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9781009503112, Cambridge University Press\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 2 January 2025\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e148 pages\u003cbr\u003e23.5 x 15.9 x 1.6 cm, 0.36 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003eAn intriguing link between a wide range of problems occurring in physics and financial engineering is presented. These problems include the evolution of small perturbations of linear flows in hydrodynamics, the movements of particles in random fields described by the Kolmogorov and Klein-Kramers equations, the Ornstein-Uhlenbeck and Feller processes, and their generalizations. They are reduced to affine differential and pseudo-differential equations and solved in a unified way by using Kelvin waves and developing a comprehensive math framework for calculating transition probabilities and expectations. Kelvin waves are instrumental for studying the well-known Black-Scholes, Heston, and Stein-Stein models and more complex path-dependent volatility models, as well as the pricing of Asian options, volatility and variance swaps, bonds, and bond options. Kelvin waves help to solve several cutting-edge problems, including hedging the impermanent loss of Automated Market Makers for cryptocurrency trading. This title is also available as Open Access on Cambridge Core.\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e1. Introduction\u003cbr\u003e 2. Fluid Flows\u003cbr\u003e 3. Kolmogorov Stochastic Process\u003cbr\u003e 4. Klein-Kramers Stochastic Process\u003cbr\u003e 5. Transition Probability Densities for Stochastic Processes\u003cbr\u003e 6. Gaussian Stochastic Processes\u003cbr\u003e 7. Non-Gaussian Stochastic Processes\u003cbr\u003e 8. Pricing of Financial Instruments\u003cbr\u003e 9. Conclusions.\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Finance [\u003ca title=\"See our other books on Finance\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Finance%20%5BKFF%5D%22\"\u003eKFF\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Cambridge University Press","offers":[{"title":"Brand New","offer_id":52414105878808,"sku":"9781009503112","price":46.79,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9781009503112i.jpg?v=1784338108","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/hydrodynamics-of-markets-hidden-links-between-physics-and-finance-hardback-9781009503112","provider":"Freshly Printed Books","version":"1.0","type":"link"}