Foundations for Financial Economics by Chi-fu Huang and Robert H. Litzenberger

This is an eBook version of a book published in print form in 1988 by Prentice Hall, the copyright of which has been returned back to the authors. This book came out of lecture notes the authors had used to teach the first course in financial markets at PhD programs in economics and in finance at Massachusetts Institute of Technology, Stanford University, and University of Pennsylvania. It was used by many top rated universities as teaching materials for a number of years until it was out of print about ten years ago.

The authors left universities and joined the financial industry in the early 1990's. Now both are retired from daily active business activities. Based on their respective academic as well as practical experiences, they believe that the materials in this book continued to be of foundational importance and thus the publication of this eBook to make the materials again readily available for interested audience.