p12 2nd last line, 2nd last para, "a companies" = " companyies' " p27 proof of theorem 2.5, 3rd line, "Q is worth less than P" = "Q is worth more than P" p36 last line, "S< KP "= "S< KZ_0" p41 line -10, "if the option was going to be worth" = "if the stock was going to be worth" p45 para 4, line 4 , "worth as much at" = "worth as much as" p46 line 1, delete pound sign after borrow p52 last equation, should be \frac{1}{2^N} not \frac{1}{2^j} p56 line after eqn (3.12), delete final "the" p59 eqn (3.21) insert \Delta t^{1/2} between 1st and 2nd ) p100 eqn (5.25) change first dX_t to dt p100 eqn (5.30) second sum should be \frac{\partial^2 f}{\partial x_j \partial x_k} i.e. put \partial before x_k p149 , 2nd line after 6.69, ref should be to 6.69 not 6.70 (this was ok in first printing.) this propagates down, p173 eqn between (7.15) and (7.16) change "<" to "\leq" p237 entirety of section 10.6.3 change H to B p252 line before 11.32, delete second "have" p259 eqn 11.63 should be (W_{t}^{1}, W_{t}^{2}) p255 eqn (11.46) switch d_2 and d_1 p281 LIBOR = London Interbank Offer Rate, line 4 p302 final equation. change from "\frac{1}{1 + f_{k} etc)" to "1+f_k etc" p317 eqn (14.31) \mu_j t = \mu_j T p319 (14.43) change upper index of sum from "l" to "r" p323 (14.58) change each Z to Z(0) p374 first equation, insert S before \p^O / \p S \p V, same on second equation p405 2nd equation, delete P, and delete "where "P" is the discount factor" p452 delete e^{-rT} p453 answer to 6.4: d F = \sigma e^{r(T-t)} dW, also put bar above final sigma , and add ", where $\bar{\sigma}$ is the root mean square vol.