Financial Hacking

Financial engineering is about Ito’s lemma, stochastic calculus and no-arbitrage conditions. This is not a book about financial engineering.

Rather, it is about Financial Hacking. Through a fascinating series of thought experiments and toy examples, Maymin shows off a number of intuitive tricks for evaluating new financial products and opportunities.

I tend to be a fan of techniques that make it easier to do back-of-the-envelope calculations, and this book is full of them for finance.