Financial Theory

1. Why Finance? 2. Utilities, Endowments, and Equilibrium 3. Computing Equilibrium 4. Efficiency, Assets, and Time 5. Present Value Prices and the Real Rate of Interest 6. Irving Fisher's Impatience Theory of Interest 7. Shakespeare's Merchant of Venice and Collateral, Present Value and th... 8. How a Long-Lived Institution Figures an Annual Budget. Yield 9. Yield Curve Arbitrage 10. Dynamic Present Value 11. Social Security 12. Overlapping Generations Models of the Economy 13. Demography and Asset Pricing: Will the Stock Market Decline when the... 14. Quantifying Uncertainty and Risk 15. Uncertainty and the Rational Expectations Hypothesis 16. Backward Induction and Optimal Stopping Times 17. Callable Bonds and the Mortgage Prepayment Option 18. Modeling Mortgage Prepayments and Valuing Mortgages 19. History of the Mortgage Market: A Personal Narrative 20. Dynamic Hedging 21. Dynamic Hedging and Average Life 22. Risk Aversion and the Capital Asset Pricing Theorem 23. The Mutual Fund Theorem and Covariance Pricing Theorems 24. Risk, Return, and Social Security 25. The Leverage Cycle and the Subprime Mortgage Crisis 26. The Leverage Cycle and Crashes