Contemporary finance and actuarial calculations have become so mathematically complex that a rigorous exposition is required for an accurate and complete presentation. This volume provides a comprehensive and up-to-date methodology for financial pricing and modelling. It includes special cases, which should prove useful for practical applications. Beyond the traditional areas of hedging and investment on complete markets (the Black-Scholes and Cox-Ross-Rubinstein models), the book includes coverage of topics such as incomplete markets, markets with constraints, imperfect forms of hedging and...