In the financial world, the use of financial derivatives has become an indispensable tool for hedging risks. This book is aimed at students of (financial) mathematics and economics in their advanced studies who wish to learn more about financial derivatives and their mathematical treatment. It presents modern numerical methods that can be used to solve the relevant valuation equations in the programming environment MATLAB. The book covers binomial methods, Monte Carlo simulations, and techniques for solving parabolic differential equations and free boundary value problems. It also addresses recent developments such as the valuation of interest rate and weather derivatives. MATLAB commands and theoretical tools from stochastic processes are integrated into the individual chapters, so no prior knowledge is necessary.