We combine general equilibrium theory and théorie générale of stochastic processes to derive structural results about equilibrium state prices.

The CAPM is the fundamental model for pricing financial securities. Nevertheless, the way it is proved in Finance textbooks can be fairly confusing, and more complicated than necessary; with an excessive use of figures at ...

How does money influence the economy? More exactly, how do changes in the level (or the rate of growth) of the quantity of money affect the values of key macroeconomic variables such as aggregate demand and the price level? ...

Find fair (according to some criterion) prices for assets in financial markets is one of the most important pillars of Finance Theory. To accomplish this, the Asset Pricing Theory has a mathematical formulation, based ...

There is a well-developed framework, the Black-Scholes theory, for the pricing of contracts based on the future prices of certain assets, called options. This theory assumes that the probability distribution of the returns ...