Page | Item |
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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, Urbana-Champaign) |
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 3-18 | 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 5-15 | Add to part (c): "What are the new upper and lower no-arbitrage 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 right-hand side of the equals sign, the formula should be "BSCall(41,40,0.30,0.08,0.25,0)" |
368, Footnote 2 | On the right-hand 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 debt-to-value 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 risk-free 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%" |