This paper investigates modern finance’s epistemological status with a special emphasis on its most quantitative part: Black-Scholes option pricing model and its extensions. It zeroes on the analysis of mathematical methods in financial economics and their connection to risk and uncertainty....

This paper provides a review of the main features of asset pricing models. The review includes single-factor and multifactor models, extended forms of the Capital Asset Pricing Model with higher order co- moments, and asset pricing models conditional on time-varying volatility.