6th lecture

I have updated the lecture notes. The new version includes a new section, Section 6, with two examples using on Thiele's differential equation (in continuous time) and a proposed exercise. Read Section 6 thoroughly and make sure you understand everything, if not, ask! I have also updated a new list of exercises. Exercise List 4 with discrete time setting and the last exercise 4.5 is a continuous time pricing of bonds (with stochastic interest rate). Exercise 4.5 is a bit disconnected from the theory seen so far, but we will need it later on. 

Homework: Read Section 6 and try some exercise from List 4. Using Thiele's difference equation it should be quick! Do not forget the assignment either.