Stochastic Calculus for Finance I: The Binomial Asset Pricing Model (Springer Finance) / Shreve, Steven

Developed for the professional Master's program in Computational Finance at Carnegie Mellon, the leading financial engineering program in the U.S.

Has been tested in the classroom and revised over a period of several years

Exercises conclude every chapter; some of these extend the theory while others are drawn from practical problems in quantitative finance