A senera1 proof of the Dybvig-Ingersoll-Ross Theorem o n thc monotonicity of long foraard rates is presented. Some inconsistencies in the original proof o f this theorein are discussed. Copyright 2002 Blackwell Publishers.

We consider weak convergence of a sequence of asset price models "(S-super-n)" to a limiting asset price model "S". A typical case for this situation is the convergence of a sequence of binomial models to the Black-Scholes model, as studied by Cox, Ross, and Rubinstein. We put emphasis on two...