Math 490 Fall 2008 Lecture Schedule

Lecture

Date

Day

Lecture

1

8/25

M

Overview; Chapter 1

2

8/27

W

Single Period Binomial Model

H

9/1

M

Holiday/Labor Day/No Class

3

9/3

W

Single Period Binomial Model

4

9/8

M

Single Period Binomial Model

5

9/10

W

Multi-Period Binomial Model (Primary Market: Definition and Trading Strategies)

6

9/15

M

Multi-Period Binomial Model (Self-Financing Property and Replicating Strategies)

7

9/17

W

Multi-Period Binomial Model (Trading in the Secondary Market and Pricing Exploration)

8

9/22

M

Multi-Period Binomial Model (Conditional Expected Value)

9

9/24

W

Multi-Period Binomial Model (Conditional Expected Value)

10

9/29

M

Multi-Period Binomial Model (P^*-martingales)

11

10/1

W

Multi-Period Binomial Model (Arbitrage Free Pricing)

12

10/6

M

Video

13

10/8

W

Presentation of Homework 6 Questions 3 and 4a by Students

14

10/13

M

Exam 1

15

10/15

W

Presentation of Homework 6 Questions 1, 2, & 5 by Students

Yields a concise proof that the market is arbitrage free if pricing is done according to the replicating strategy.

16

10/20

M

Summarize concise proof of arbitrage proof.  Prove that there is arbitrage if pricing is not done according to the replication strategy.

17

10/22

W

Definition of the Finite Market Model

18

10/27

M

First Fundamental Theorem of Asset Pricing

19

10/29

W

First Fundamental Theorem of Asset Pricing

20

11/3

M

First Fundamental Theorem of Asset Pricing

21

11/5

W

Second Fundamental Theorem of Asset Pricing

22

11/10

M

Second Fundamental Theorem of Asset Pricing

23

11/12

W

Second Fundamental Theorem of Asset Pricing

24

11/17

M

Existence and Uniqueness of the Arbitrage Free Price Process for Replicable Contingent Claims

25

11/19

W

Pricing Nonreplicable Contingent Claims

26

11/24

M

Review

27

11/26

W

Exam 2

28

12/1

M

Arbitrage Free Pricing for Nonreplicable Claims: Existence and Nonuniqueness

29

12/3

W

Arbitrage Free Pricing for Nonreplicable Claims: Tight Bounds for Time Zero Pricing

30

12/8

M

Final Exam, 4pm, in Sci2-337A