The high quality papers of this volume present applications of financial modelling. Among the important features are practical applicability and European institutional framework. The attention is focused on peculiarities like "thin capital markets, frictions, rationing, 'irratio…
Describing the collapse of the subprime mortgage CDO market in 2007, Derman urges readers to stop relying on these financial models where possible, and offers suggestions for mending these models where they might still do some good. This is a fascinating, lyrical, and very human…
