CHAPTER 1
Black-Scholes and Pricing Fundamentals
1.1 Forward Contracts
1.2 Black-Scholes Partial Differential Equation
1.3 Risk-Neutral Pricing
1.4 Black-Scholes and Diffusion Process Implementation
1.5 American Options
1.6 Fundamental Pricing Formulas
1.7 Change of Numeraire
1.8 Girsanov’s Theorem
1.9 The Forward Measure
1.10 The Choice of Numeraire