Asset Pricing: Fundamental Theorems

This lecture covers the fundamental theorems of asset pricing, including the existence and uniqueness of Equivalent Martingale Measures (EMM), self-financing strategies, risk-neutral pricing, and the Viability theorem. It also delves into martingales, contingent claims, pricing kernels, and the completeness of markets. The lecture concludes with discussions on hedging strategies, American options, and the relationship between EMM and Pricing Kernel.