Robert Merton is one of the great economists of our time. He pioneered the use of stochastic calculus in finance and economics, using it to address problems of portfolio selection, option pricing, the capital structure of firms and market equilibrium. This book is a collection of their (most of the parts are Merton's) papers written during the past 25 years. The papers are little bit changed so as to be cross-referenced through the book. Also You can find some comments in the book for the recent literatures. As you know, Dr. Merton introduced continuous-time approaches into the finance. This book deals with basic mathematics for the continuous time finance, portfolio selection, option pricing, and theory of inter-temporal equilibrium. The value of this book is greater than that of papers copied separately in the library. Also it is a great pleasure to see how his theory has been evolved through the book.
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