4.3f Derivative instruments - the mathematics of Black Scholes - tradables and numeraires

This paper covers:

• A general derivative pricing model in continuous time and its implications for hedging
• The forward measures
• Tradables and complete markets including the market price of risk, non-tradable assets, the case of dividend-paying stocks, and the case of inverted FX rates
• The theory of numeraires
• The price kernel of an economy/market
• Several drivers in an economy

This paper has 18 pages and the Excel has 2 sheets