{"product_id":"9781108707657","title":"The Black-Scholes-Merton Model as an Idealization of Discrete-Time Economies (Econometric Society Monographs)","description":"\u003cp\u003eThis book examines whether continuous-time models in frictionless financial economies can be well approximated by discrete-time models. It specifically looks to answer the question: in what sense and to what extent does the famous Black-Scholes-Merton (BSM) continuous-time model of financial markets idealize more realistic discrete-time models of those markets? While it is well known that the BSM model is an idealization of discrete-time economies where the stock price process is driven by a binomial random walk, it is less known that the BSM model idealizes discrete-time economies whose stock price process is driven by more general random walks. Starting with the basic foundations of discrete-time and continuous-time models, David M. Kreps takes the reader through to this important insight with the goal of lowering the entry barrier for many mainstream financial economists, thus bringing less-technical readers to a better understanding of the connections between BSM and nearby discrete-economies.\u003c\/p\u003e","brand":"Cambridge University Press","offers":[{"title":"Default Title","offer_id":49128035057891,"sku":"00000_00000_00000_00000","price":49.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0764\/3758\/6147\/files\/9781108707657-1.jpg?v=1788370927","url":"https:\/\/usa.kinokuniya.com\/products\/9781108707657","provider":"Books Kinokuniya USA","version":"1.0","type":"link"}