The modeling of the evolution of prices in (near) efficient markets and the evaluation of functions of these prices such as guarantees, options, warrants, futures, and other types of derivatives. Arrow-Debreu state-contingent claims. Notions of complete and incomplete markets. Precludes additional credit for ECON 4100 (no longer offered) and ECON 4504 (no longer offered). Prerequisite(s): ECON 2030 with a grade of C- or higher or ECON 2003 (no longer offered) with a grade of C- or higher, and ECON 2400 with a grade of C- or higher.Lectures three hours a week.
