Update to Lesson A.3.1
January 27th, 2010
Hello all. It’s been brought to my attention that when changes are made to lessons and problem sets, the website marks the file as updated, but there is no simple way to tell what has been changed. From this point forward, I will use this forum to keep you informed of the exact changes whenever we modify a file.
Most recently, we made a few changes to lesson A.3.1. Specifically, in the discussion of the second no-arbitrage condition for calls and puts with different strikes (pages 6 and 7 of the lesson, respectively), I modified the lecture to include separate conditions for European and American options. There was also a minor change to the solution for the second sample problem to correct a typo at the bottom of page 10.