Lecture 03Brigo & Mercurio 2.1–2.3
No-Arbitrage Pricing, Martingale Measures, and Numeraire Change
Pricing-theoretic foundations for the course: self-financing strategies, no-arbitrage pricing, equivalent martingale measures, contingent claims, and the first numeraire-change toolkit.
Lecture Video
Text Coverage
Brigo & Mercurio 2.1–2.3
Brigo & Mercurio, Interest Rate Models, 2nd ed.