… a nice book for researchers and practitioners. … this book can be regarded as a wonderful application of stochastic analysis, as it includes not only detailed theoretical proofs but also practical illustrative examples. With the systematic and feasible numeraire techniques, the book can...

chapter 1 Elements of Finance -- chapter 2 Binomial Models -- chapter 3 Diffusion Models -- chapter 4 Interest Rate Contracts -- chapter 5 Barrier Options -- chapter 6 Lookback Options -- chapter 7 American Options -- chapter 8 Contracts on Three or More Assets: Quantos, Rainbows and "Friends"...