Known typos in first printing of second edition page 28, line -6, less = more page 58, line -4, expectation = expected page 76, line 13, time execute = time to execute page 113, 3rd line after (5.47) d(f(s)) = d(f(S)) page 134, in equation2 (6.11) to (6.13) J_L = J_l page 163, line 14, change dS to S page 179, Exercise 6.18, change Y_{-1} =0 to Y_0 = 0 page 184, second last para, replace 3 sentences starting "The price of the option is then just ... " with The price of the option is then just the binomial probability that the option finishes in the money. If we have an even number of nodes in the final layer then this equals $0.5.$ However, if there is an odd number then there will be one at $S_0 exp( -\frac{1}{2} \sigma^2 T)$ just below $K$ resulting a price markedly different from $0.5.$ page 269, line 12 Im A A' = Im AA^{\perp} page 269, line -1, A_{jk} = a_{jk} page 270, (11.29) A_{jk} = a_{jk} page 271, (11.34) rD = rD dt page 295, line 25, one could such = one could use page 298, line -9, Thus is if = Thus if page 307, (13.14) P_0 - P_N = P(T_0) - P(T_N) page 308, line 1, "in year" = "in a year" page 308, bad break line -11 page 323, lines 18,19 X = K, also in last displayed equation (there should be no Xs on this page) page 325, line 17, $f_t$ = $f_j$ page 326, line -8 (t_1 - t_0)f_0(t_0) = (t_1 - t_0)(f_0(t_0) -K) page 338, line -11, W_1 and W_3 = W_{t}^{(1)} and W_{t}^{(3)} Page 353, line 5, pseudo-square root of $A$ = pseudo-square root of $C$ page 381, first line of section 15.9, observed market = observed the market page 384, line 3, function not twice-differentiable = function is not twice-differentiable page 385, line 8, then it also true = then it is also true page 403, line -1, examine to = examine how to page 407, line -7, f(S_{t_1} , .... S_{t_k}) = f(S_{t_1} , ... , S_{t_k}) page 412, line -5, the by = by the page 522, answer to Ex13.5 denonimator of fraction should be \sum \limits_{i \leq j} \tau_{i-1} P_i. page 523, answer to exercise 15.1, in third line replace "second" by "first" page 524, ex15.10, line 4, there is upper = there is no upper