| 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,
Urbana-Champaign)
|
| xxiv, xxv | "Skiadis" should be spelled "Skiadas" (also on xxv)
|
| 19, 1st para | "assett"
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| 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%"
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