CONTENTS -- Preface -- Acknowledgments -- Finance Theory and Asset-Allocation -- On the Regulation of Fee Structures in Mutual Funds -- The Mean-Variance Synthesis of Corporate Balance Sheets -- Multi-Stage Optimization for Long-Term Investors -- A Discrete-Time Approach to Arbitrage-Free Pricing of Credit Derivatives -- An Alternative Approach for Valuing Continuous Cash Flows -- Arbitrage Pricing and Equilibrium Pricing: Compatibility Conditions -- Nonlinear Financial Models: Finite Markov Modulation and its Limits -- Pricing American Options with Transaction Costs by Complementarity Methods -- Term-Structure Models -- A Linearization Approach in Modeling Quasi-Affine Coupon Rate Term Structures and Related Derivatives -- A Generalized Ornstein-Uhlenbeck Process of Yield Rates Calibrated with Strips -- Mathematical Pseudo-Completion of the BGM Model -- Algorithms for Pricing and Hedging -- A Finite Difference Method for the Valuation of Variance Swaps -- Pricing Discrete Barrier Options with an Adaptive Mesh Model -- Bermudan Option Pricing with Monte-Carlo Methods -- Linear, Yet Attractive, Contour -- Conquering the Greeks in Monte Carlo: Efficient Calculation of the Market Sensitivities and Hedge-Ratios of Financial Assets by Direct Numerical Simulation.