Acknowledgements 
Bjarne Astrup
Jensen made many helpful comments 
1 
P. 13 
"International Accounting Standard Board" should be
"International Accounting Standards Board" 
1 
P. 17 
Box 1.2, 2nd paragraph: "Convention" should be "election", and
"If you sold all four" should be "If you sold both" 
2 
P. 161 
Appendix, title should be "Taxes and the Forward Price"
(not "rate") 
1 
pp. 546  562 
In Chapter 18, both lowercase z and uppercase Z are used to
represent a standard normal random variable. For clarity, all
should be uppercase: 546 (3rd displayed expression, 3rd line from
bottom); 547 (figure 18.2, two occurrences); 548 (first three
unnumbered equations and eq 18.4); 549 (eq 18.7 and example 18.2
(two occurrences)); 554 (second sentence above eq 18.21); 555
(first sentence below example 18.4); 557 (2nd line from bottom);
562 (first two displayed equations in sect 18.5) in chapter 20 (see 20.39).  2 
p 565  The term "kurtosis" can mean either
(E[(xmu)^4]/sigma^4) (as defined in the book) or
(E[(xmu)^4]/sigma^4)3, which is how it is typically defined
in spreadsheets and many statistical packages. Using the
second measure, also sometimes called "excess kurtosis", the
kurtosis of the normal distribution is zero.  2 
p 567  In Figure 18.5 the sample data points are on the
yaxis. The text presumes that data points are on the
xaxis, so the x and yaxis should be reversed in the
figure. Corrected plots are here
(eps) and here (pdf).
plots.  2 
p. 588  4th line from bottom: The reference should be
to equation (19.9) instead of (19.10). 
p. 596  See the entry for p. 565 regarding the
definition of kurtosis 
p. 558  third
line from bottom, 62.09 should be 60.09  3 
  
p. 618  Eq 20.29 should have no tilde over the Z and eq 20.30
should have a tilde over the Z  
p. 622  Equation 20.39 and line after, dz should
be dZ (three occurrences)  
  
p. 623  There should be a Greek delta subtracted from alpha
in eq 20.42 and in the displayed equation for dS/S below.  3 
  
p. 643  There should be a Greek delta subtracted from alpha
in eq 21.38.  3 
  
p. 888  Definition of "heat rate": "kilowatt/hour"
should be "kilowatthour"  1 

 