No label defined (Q4520137)

This monograph recasts the foundations of the Black-Scholes (and Cox-Ross-Rubinstein) theory, or better their approach to modeling financial markets, in terms of non-standard analysis and hypermodels. Chapter 7, the last chapter, of the book is a true introduction, at a leisurely pace, to infinitesimal analysis covering quite a lot of ground and reaching all the way to, for instance, infinitesimal versions of Malliavin calculus. Hypermodels are really an excellent tool for modeling continuous behavior via discrete approaches constructed initially at a very intuitive level. The exposition is clear and detailed, and the enthusiasm of the author shows in every chapter.