An engine, not a camera : how financial models shape markets

Intro -- Acknowledgements -- 1 Performing Theory? -- 2 Transforming Finance -- 3 Theory and Practice -- 4 Tests, Anomalies, and Monsters -- 5 Pricing Options -- 6 Pits, Bodies, and Theorems -- 7 The Fall -- 8 Arbitrage -- 9 Models and Markets -- Appendix A An Example of Modigliani and Miller's "Arbitrage Proof" of the Irrelevance of Capital Structure to Total Market Value -- Appendix B Lévy Distributions -- Appendix C Sprenkle's and Kassouf's Equations for Warrant Prices -- Appendix D The Black-Scholes Equation for a European Option on a Non- Dividend-Bearing Stock -- Appendix E Pricing Options in a Binomial World -- Appendix F Repo, Haircuts, and Reverse Repo -- Appendix G A Typical Swap-Spread Arbitrage Trade -- Appendix H List of Interviewees -- Glossary -- Notes -- Sources of Unpublished Documents -- References -- Series List -- Index.