This paper surveys continuous-time models of the yield curve. Intuitive explanations are given of the mathematical tools (Ito's Lemma and Girsanov's Theorem) and the economic principles (risk-neutral pricing). The distinctions between the equilibrium and arbitrage approaches and between factor...

We derive the effect of plausible deniability on asset risk premia in a dynamic setting with correlated firm values, systematic risk, and risk-averse investors. Firms optimally exercise American disclosure options, which are more valuable due to the possibility that other correlated firms may...

We analyze dynamic trading by an activist investor who can expend costly effort to affect firm value. We obtain the equilibrium in closed form for a general activism technology, including both binary and continuous outcomes. Variation in parameters can produce either positive or negative...