TECHNICAL BACKGROUND Financial Preliminaries European Derivative Securities Exotic Options Binary Options No-Arbitrage Pricing Methods The Black-Scholes PDE Method Derivation of Black-Scholes PDE Meaning of the Black-Scholes PDE The Fundamental Theorem of Asset Pricing The EMM Pricing Method Black-Scholes and the FTAP Effect of Dividends Mathematical Preliminaries Probability Spaces Brownian Motion Stochastic Des Stochastic Integrals Itô''s Lemma Martingales Feynman-Kac Formula Girsanov''s Theorem Time Varying Parameters The Black-Scholes PDE The BS Green''s Function Log-Volutions Gaussian Random Variables Univariate Gaussian Random Variables Gaussian Shift Theorem Rescaled Gaussians Gaussian Moments Central Limit Theorem Log-Normal Distribution Bivariate Normal Multivariate Gaussian Statistics Multivariate Gaussian Shift Theorem Multivariate Itô''s Lemma and BS-PDE Linear Transformations of Gaussian RVs APPLICATIONS TO EXOTIC OPTION PRICING Simple Exotic Options First-Order Binaries BS-Prices for First-Order Asset and Bond Binaries Parity Relation European Calls and Puts Gap and Q-Options Capped Calls and Puts Range Forward Contracts Turbo Binary The Log-Contract Pay-at-Expiry and Money-Back Options Corporate Bonds Binomial Trees Options on a Traded Account Dual Expiry Options Forward Start Calls and Puts Second-Order Binaries Second-Order Asset and Bond Binaries Second-Order Q-Options Compound Options Chooser Options Reset Options Simple Cliquet Option Two-Asset Rainbow Options Two-Asset Binaries The Exchange Option Options on the Minimum/Maximum of Two Assets Product and Quotient Options ICIAM Option Competition Executive Stock Option Barrier Options Introduction Method of Images Barrier Parity Relations Equivalent Payoffs for Barrier Options Call and Put Barrier Options Barrier Option Rebates Barrier Option Extensions Binomial Model for Barrier Options Partial Time Barrier Options Double Barriers Sequential Barrier Options Compound Barrier Options Outside-Barrier Options Reflecting Barriers Lookback Options Introduction Equivalent Payoffs for Lookback Options The Generic Lookback Options m(x, y, t) and M(x, z, t) The Standard Lookback Calls and Puts Partial Price Lookback Options Partial Time Lookback Options Extreme Spread Options Look-Barrier Options Asian Options Introduction Pricing Framework Geometric Mean Asian Options FTAP Method for GM Asian Options PDE Method for GM Asian Options Discrete GM Asian Options Exotic Multi-Options Introduction Matrix and Vector Notation The M-Binary Payoff Valuation of the M-Binary Previous Results Revisited Multi-Asset, One-Period Asset and Bond Binaries Quality Options Compound Exchange Option Multi-Asset Barrier Options References Index A Summary and Exercises appear at the end of each chapter. aussian Random Variables Univariate Gaussian Random Variables Gaussian Shift Theorem Rescaled Gaussians Gaussian Moments Central Limit Theorem Log-Normal Distribution Bivariate Normal Multivariate Gaussian Statistics Multivariate Gaussian Shift Theorem Multivariate Itô''s Lemma and BS-PDE Linear Transformations of Gaussian RVs APPLICATIONS TO EXOTIC OPTION PRICING Simple Exotic Options First-Order Binaries BS-Prices for First-Order Asset and Bond Binaries Parity Relation European Calls and Puts Gap and Q-Options Capped Calls and Puts Range Forward Contracts Turbo Binary The Log-Contract Pay-at-Expiry and Money-Back Options Corporate Bonds Binomial Trees Options on a Traded Account Dual Expiry Options Forward Start Calls and Puts Second-Order Binaries Second-Order Asset and Bond Binaries Second-Order Q-Options Compound Options Chooser Options Reset Options Simple Cliquet Option Two-Asset Rainbow Options Two-Asset Binaries The Exchange Option Options on the Minimum/Maximum of Two Assets Product and Quotient Options ICIAM Option Competition Executive Stock Option Barrier Options Introduction Method of Images Barrier Parity Relations Equivalent Payoffs for Barrier Options Call and Put Barrier Options Barrier Option Rebates Barrier Option Extensions Binomial Model for Barrier Options Partial Time Barrier Options Double Barriers Sequential Barrier Options Compound Barrier Options Outside-Barrier Options Reflecting Barriers Lookback Options Introduction Equivalent Payoffs for Lookback Options The Generic Lookback Options m(x, y, t) and M(x, z, t) The Standard Lookback Calls and Puts Partial Price Lookback Options Partial Time Lookback Options Extreme Spread Options Look-Barrier Options Asian Options Introduction Pricing Framework Geometric Mean Asian Options FTAP Method for GM Asian Options PDE Method for GM Asian Options Discrete GM Asian Options Exotic Multi-Options Introduction Matrix and Vector Notation The M-Binary Payoff Valuation of the M-Binary Previous Results Revisited Multi-Asset, One-Period Asset and Bond Binaries Quality Options Compound Exchange Option Multi-Asset Barrier Options References Index A Summary and Exercises appear at the end of each chapter. ial Trees Options on a Traded Account Dual Expiry Options Forward Start Calls and Puts Second-Order Binaries Second-Order Asset and Bond Binaries Second-Order Q-Options Compound Options Chooser Options Reset Options Simple Cliquet Option Two-Asset Rainbow Options Two-Asset Binaries The Exchange Option Options on the Minimum/Maximum of Two Assets Product and Quotient Options ICIAM Option Competition Executive Stock Option Barrier Options Introduction Method of Images Barrier Parity Relations Equivalent Payoffs for Barrier Options Call and Put Barrier Options Barrier Option Rebates Barrier Option Extensions Binomial Model for Barrier Options Partial Time Barrier Options Double Barriers Sequential Barrier Options Compound Barrier Options Outside-Barrier Options Reflecting Barriers Lookback Options Introduction Equivalent Payoffs for Lookback Options The Generic Lookback Options m(x, y, t) and M(x, z, t) The Standard Lookback Calls and Puts Partial Price Lookback Options Partial Time Lookback Options Extreme Spread Options Look-Barrier Options Asian Options Introduction Pricing Framework Geometric Mean Asian Options FTAP Method for GM Asian Options PDE Method for GM Asian Options Discrete GM Asian Options Exotic Multi-Options Introduction Matrix and Vector Notation The M-Binary Payoff Valuation of the M-Binary Previous Results Revisited Multi-Asset, One-Period Asset and Bond Binaries Quality Options Compound Exchange Option Multi-Asset Barrier Options References Index A Summary and Exercises appear at the end of each chapter. mp;lt;BR>Barrier Option Rebates Barrier Option Extensions Binomial Model for Barrier Options Partial Time Barrier Options Double Barriers Sequential Barrier Options Compound Barrier Options Outside-Barrier Options Reflecting Barriers Lookback Options Introduction Equivalent Payoffs for Lookback Options The Generic Lookback Options m(x, y, t) and M(x, z, t) The Standard Lookback Calls and Puts Partial Price Lookback Options Partial Time Lookback Options Extreme Spread Options Look-Barrier Options Asian Options Introduction Pricing Framework Geometric Mean Asian Options FTAP Method for GM Asian Options PDE Method for GM Asian Options Discrete GM Asian Options Exotic Multi-Options Introduction Matrix and Vector Notation The M-Binary Payoff Valuation of the M-Binary Previous Results Revisited Multi-Asset, One-Period Asset and Bond Binaries Quality Options Compound Exchange Option Multi-Asset Barrier Options References Index A Summary and Exercises appear at the end of each chapter. BR>FTAP Method for GM Asian Options PDE Method for GM Asian Options Discrete GM Asian Options Exotic Multi-Options Introduction Matrix and Vector Notation The M-Binary Payoff Valuation of the M-Binary Previous Results Revisited Multi-Asset, One-Period Asset and Bond Binaries Quality Options Compound Exchange Option Multi-Asset Barrier Options References Index A Summary and Exercises appear at the end of each chapter.