Explores arbitrage-free and complete financial market models, risk-neutral probabilities, structured notes pricing, and option hedging.
Covers financial markets structure, participants, government debt, asset managers, market sizes, derivatives, trading frequencies, orders, and portfolio returns.
Covers forward contracts, options, hedging, and speculative strategies in derivatives trading.
Explains the determination of equilibrium state prices in asset pricing through consumption market clearing and budget constraints.
Introduces the history and concepts of derivatives, including forward contracts, options, and their use in hedging and speculation.