Going to a top grad program for this. Feel free to ama
>>11958305Get Shreve's Stochastic Calculus for Finance I & II instead. It is more self contained. Volume I builds up the theory with the discrete case, which makes Volume II more intuitive, especially if you don't have a heavy math background. Plus both have exercises.
>>11955942The purpose is not to beat the market, but to price options that cannot be arbitraged and hedge portfolio risk.
>>11957368>European MarketsBSM models European options not markets. The fundamental theory can be extended to other more exotic options as well.
