Quantitative skills are a prerequisite for anyone looking to work in the finance industry today, and within the industry, any risk professional who wants to collaborate with, or work in most front office departments need a thorough grounding in numerical methods, and the ability to assess their quality, their advantages and their limitations. A Workout in Computational Finance provides a comprehensive introduction to the different numerical methods used in computational finance today. As well as giving a thorough grounding to each method, the book will reveals the numerical 'traps', practitioners can fall into using each method, revealing their strengths and limitations. Each method will be referenced with practical, real-world examples in the areas of valuation, risk analysis and calibration of specific financial instruments and models with a strong emphasis on robust schemes for the numerical treatment of problems within computational finance. The numerical methods treated in this book cover: - solution of PDE/PIDE using finite differences or finite elements including stabilization techniques for convection dominated equations - fast and stable solvers for the solution of the resulting sparse grid systems - stabilization and regularization techniques for the inverse problems resulting from the calibration of financial models to market data - Monte Carlo and Quasi Monte Carlo techniques for the simulation of high dimensional systems - local and global optimization tools to solve the minimization problem The book will be accompanied by a website, featuring a wide range of interactive examples available for download in Mathematica notebooks, in which the distinguishing features of the various methods are demonstrated. These examples, based on the authors' experience in numerical software development, will enable readers to engage one on one with the numerical methods in question, and understand and manipulate the impact of varying parameter settings, gaining valuable insight on how different results can be accomplished through different numerical and computational methods. A Workout in Computational Finance will guide risk and quantitative finance practitioners through the landscape of different numerical methods, and issue the danger signals around the traps and problems occurring if he or she does not pay enough attention to the numerical schemes involved in calibration and pricing processes.