pxiii 2nd line last para extraneous "it" p xvii kwiatkowski p28 sec 2.8 moves -> move p47 45,50,45 not 45,55,45 p50 4th line up "have can choose" -> "can choose" p52 in the middle of the page ..... ( N j ) 1/2^j should read as ( N j ) 1/2^N p56 3rd para up 4th line down "depend on" p58 3.7.2 ln 6 "up and down" moves p58 3.7.2 para 2 ln 2: "is given by" P 58, the second equation ... logS0 + \mu T + \sigma*\sqrt(dt)*N(0,1) should read as logS0 + \mu T + \sigma*\sqrt(T)*N(0,1) p62 last line K=Sexp(rT) p68 ex3.9 Insert "B is worth 80 if and only if A is worth 90." before "there is" p69 ex3.11 "an American ..." p74 top line "which has" -> "has" p74 para2 2nd deriv wrt spot is called the Gamma p95 5th eq down sigma t -> sigma(t) p100 eq5.25 f'(X_t,t) dX_t p100 eq5.30 partial^2 / ... p101 eq5.35 sigma S_t dW_t p101 ln7 "for a stock" p105 5.53 should dC/dt not dC/ds on rhs p107 eq5.61 extra minus p107 bottom eq missing 1/2 sigma^2 S^2 in front of 1/2 d^2C/dS^2 p115 ex5.10 it should be X^(1), X^(2) p119 para6 penult ln "we are assigning" p122 line -3 a_0 =0 not 1 p123 para5 "an interval I" p126 (6.20) 2N-k not 2N-2k p127 para 3 assumption that it is p128 para1 (after eq 6.26) This simple formula p128 before eq 6.27 "add up to 1" p128 line 6 Theorem 2.10 not Theorem 2.7 p131 final para "The point" -> "The path" p132 ln1 "it is possible" p137 para4 ln6 is that it is impossible p142 para2 (end) 2 full stops p146 after 6.58 "for small t-s" p146 penult line fails to exist p148 eq6.67 d(S_t/B_t) = S_t/B_t dWtilde_t p148 in the sentence before 6.67, no "and" p151 7th ln from bottom "can be solved" p154 6.11 ln5 "volatility sigma(t)..." p155 eq before 6.104: sigma=sqrt{1/T int_0^T sigma^2(s)ds} p160 6.117 should be e^{-frac{\sigma^2}{2} +...} 6.119 should be (-1)^{j-1} \frac{\sigma^2 T}{2} p164 ex6.2 questions are Roman numerals but answers are Arabic p166 ln3 "is to look" p179 last line "one simple way" p191 ln6 "the value" p202 about half way down equation should have - e^{-rT}{\Bbb P}_{B}(... (currently missing e^{-rT}) p216 (9.30) should S_0 e^{(r-\frac{1}{2} \sigma^2)T_j + ... equation after (9.32) small ts should be capital T equation after (9.33) same problem, plus final t_k should be T_j p230 line 14, x_{k_1} should be x_{k-1} line 15, x_{n-1} should be x_{k-1} p245 should be \frac{1}{2} on final sum P260 (11.70) insert +\sigma_i between \Delta t and ( p 283 eqn before (13.5) insert -1 before ) (so becomes of form 13.4) p311 14.18 should be \rho_{l+j,l+r} 14.19 should be \rho_{l+j,l+r} p312 equation in middle of page upper limit of integral should be t_0 p318 14.43 should be \rho_{l+j,l+r} p320 14.47 insert ^{1/2} on brackets (cf 14.48) p323 line 7, change "such that the swap rates" to "such that no swap rates" p323 eqn after 14.58 C_{jj}^{SR}(0,t_j) p 343 after equation 15.4 change "exponentially" to "Poisson" p 346 insert "continuously" before "differentiable" p348 3rd line of section 15.15 transpose "that of" p371 line 7, insert "not" after "but" p416 second formula change r to s p464 ref [47] "stochastic volatility" not "financial volatility" p466 ref [107] it should "the modern pricing of interest rate derivatives"