Multiperiod Valuation and Hedging

This lecture covers the concepts of arbitrage, martingale measures, and the fundamental theorem of asset pricing in the context of multiperiod models. It explains the absence of arbitrage, the interpretation of equivalent probabilities, and the completeness of financial markets. The instructor discusses attainable derivatives, pricing, and hedging strategies, emphasizing the importance of market completeness in determining replicating portfolios for various financial instruments.