Explore the foundations of mathematical finance with this concise guide from The Bookish Owl. Discover the ‘theory of arbitrage’ and its pivotal role in asset valuation and risk management, from the groundbreaking Black-Scholes formula to modern applications. This ‘Very Short Introduction’ by Mark Davis is ideal for those new to the field, explaining complex concepts of pricing theory and their use in interest rates, credit trading, fund management, and risk management. Understand the evolution of finance and the challenges shaping its future, including responses to the 2008 crisis and the impact of new technology. A must-read for understanding the quantitative underpinnings of today’s financial markets.