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Lecture
Are you an EPFL student looking for a semester project?
Work with us on data science and visualisation projects, and deploy your project as an app on top of Graph Search.
This lecture covers the first theorem of asset pricing in a discrete time economy with risky assets, self-financing portfolios, and stochastic discount factors. It also explores Cox, Ross, and Rubinstein's derivation of the Black-Scholes formula as a limit of the discrete time binomial model, focusing on multiple periods and complete markets.