This course covers the fundamental principles and techniques of ¯nancial mathematics in discrete-
and continuous-time models. The focus will be on probabilistic techniques which will be discussed
in some detail. Specific topics are
² Classical Asset Pricing: Mean-Variance Analysis, CAPM, Arbitrage.
² Martingale-based stochastic market models: Fundamental Theorems of Asset Pricing.
² Contingent Claim Analysis: European, American and Exotic Options.
² Interest Rate Theory: Term Structure Models, Interest Rate Derivatives.