Martingales and optimal stopping -- Derivatives in general and binomial markets -- Fundamental theorems of asset pricing -- Superhedging -- Hedging with risk -- Martingales in continuous time and optimal stopping -- Introduction to stochastic analysis -- Derivatives in the Black-Scholes market...

Stochastically ordered random variables with given marginal distributions are combined into a joint distribution preserving the ordering and the marginals using a maximum entropy formulation. A closed-form expression is obtained. An application is in default estimation for different portfolio...