Financial derivatives account for more than half of financial instruments in the modern market being the fundamental tool for risk hedging in portfolio management. Many complex exotic options have been designed and put into market for various needs. Those products typically involve multiple assets with long time horizons and, consequently, there has been a considerable demand of accurate models and efficient computational techniques for treating nonlinearities and complexities in pricing and hedging financial derivatives. This special issue addresses state of the art advances in modelling and computation of financial derivatives, containing papers presenting new research results in topics including:
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Credit derivatives—pricing and modelling
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Regime switching models
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Stochastic modelling and simulation
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Advances in Monte Carlo methods
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Numerical PDE methods with transaction costs
We would like to thank all the referees for their diligent work in reviewing manuscripts. In addition, our special thanks to Professor E.H. Twizell, former Editor-in-Chief of IJCM for his support, encouragement and guidance throughout this endeavour.