Page  Item


viii, TOC  "Reasons Not to Hedge" is on p. 103, not p. 102

xxiv  omitted from thanks Ravi Jagannathan (Northwestern
University) and Virginia France (University of Illinois,
UrbanaChampaign)

xxiv, xxv  "Skiadis" should be spelled "Skiadas" (also on xxv)

19, 1st para  "assett"

32, Fig 2.5  The column heading "strike" should be over
the second column

53, Prob 2.7(a)  "forward price of $100" should read
"forward price of $55"

87, Prob 318  Either the problem needs to specify profit
diagrams, or (c) needs to mention borrowing

98, Figure 4.7  The legend entry that reads "Unhedged
seller" should read "Unhedged buyer"

132, Box  A positive interest rate rules out
bidirectional time travel, but not unidirectional time
travel

154, Prob 5.5(c)  In the last line, "resulting long"
should read "resulting short"

156, Prob 515  Add to part (c): "What are the new upper and
lower noarbitrage bounds?" 
178  First line below "Gold Investments", "Portfolio" is
misspelled. 
192  In the 4th paragraph, references to 10,000 barrels
should be 100,000 barrels (to be consistent with 1.2m in subsequent
discussion. 
223, Figure 7.5  Columns headings are missing from the
figure

320, Figure 10.  The bottom right node should have a
price of $26.416 (instead of 29.416).

367, Footnote 1  On the righthand side of the equals sign,
the formula should be "BSCall(41,40,0.30,0.08,0.25,0)"

368, Footnote 2  On the righthand side of the equals sign,
the formula should be "BSPut(41,40,0.30,0.08,0.25,0)"

449, Example 14.3  In this example Microsoft is the strike
asset. This isn't clear from the wording.

368, Footnote 2  The put price is $1.607, not $3.399

493, Example 16.1  The debttovalue ratio of the firm is
62.93/90 = 0.699.

493, Example 16.1  The last line of Example 16.1 should
the say "The debt yield of 9.26\% is 326 basis points greater than the
riskfree rate."

496, 8th line  Last sentence is ambiguous: "Debt value
would decline by $0.66."

504, sidebar  Last paragraph, should be $1.6b.

543, Eq. 17.5  Denominator should be (1+r)^T

548, Eq. 17.8  On both sides of the equals sign, should be
1/(1+r)^T (not "T+r")

644  Greek thetas should be lower case

796  End of first paragraph: "never be less than 100%"
should be "never be greater than 100%"

796  Third equation, should be "ln(5048.62/2292.89)=78.93%"


