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This is the first volume of the Paris-Princeton Lectures in Financial Mathematics. The goal of this series is to publish cutting edge research in self-contained articles prepared by well known leaders in the field, or promising young researchers invited by the editors to contribute to a volume. Particular attention is paid to the quality of the exposition and we aim at articles that can serve as an introductory reference for research in the field. The series is a result of frequent exchanges between researchers in finance and financial mathematics in Paris and Princeton. Many of us felt that the field would benefit from timely expos´es of topics in. | Lecture Notes in Mathematics Editors J.-M. Morel Cachan F. Takens Groningen B. Teissier Paris 1814 Springer Berlin Heidelberg New York Hong Kong London Milan Paris Tokyo Peter Bank Fabrice Baudoin Hans Follmer L.C.G. Rogers Mete Soner Nizar Touzi Paris-Princeton Lectures on Mathematical Finance 2002 Editorial Committee R. A. Carmona E. Cinlar I. Ekeland E. Jouini J. A. Scheinkman N. Touzi .
