Table of Contents

Preface; PART I: INTRODUCTION AND BASIC CONCEPTS; 1. Basic Concepts; 2. Intertemporal Decision-Making and Time Value of Money; 3. Risk and Uncertainty; PART II: FIRM VALUATION AND CAPITAL STRUCTURE; 4. Valuation of Stocks; 5. Valuation of Cash Flows and Capital Budget Allocation; 6. Financial Structure of a Firm; PART III: FIXED INCOME SECURITIES AND OPTIONS; 7. Valuation of Bonds and Interest Rates; 8. Markets for Options; 9. Arbitrage and Binomial Model; 10. Brownian Motion and Ito's Lemma; 11. The Black-Scholes-Merton Model; 12. Exotic Options; 13. Risk-Neutral Valuation and Martingales; PART IV: PORTFOLIO MANAGEMENT THEORY; 14. Portfolio Management: The Mean-Variance Approach; 15. Stochastic Dominance; 16. Portfolio Management: The Mean-Gini Approach; Bibliography; Index

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A systematic treatment of theory and methodology of finance and economics, complete with numerical and applied examples, quantitative problems and questions.

About the Author

Satya R. Chakravarty is Professor of Economics at the Indian Statistical Institute in Kolkata, India.