Financial Engineering (I) #2 – Introduction to No Arbitrage

Consider the following contract 1. Pay the price p at t=0. 2. Receive at time t=k, k = 1, …, T *Cash flow can be negative So what does the above contract mean? One pays a price p at time in [...]

Financial Engineering (I) #1 – Overview

As some of you observe, I’ve been posting a handful of undergraduate and postgraduate materials or courses here. Some close students also asked me to share more on financial engineering. So [...]