ECON 251: Financial Theory
John Geanakoplos, James Tobin Professor of Economics, Yale University
This course attempts to explain the role and the importance of the financial system in the global economy.
Rather than separating off the financial world from the rest of the economy, financial equilibrium is studied
as an extension of economic equilibrium. The course also gives a picture of the kind of thinking and analysis
done by hedge funds.
Bodie, Zvi, and Robert C. Merton.
Upper Saddle River, New Jersey: Prentice Hall, 2000.
Chance, Don M.
An Introduction to Derivatives,
3rd edition, Fort Worth, Texas: The Dryden Press, Harcourt
Brace College Publishers, 1995.
DeGroot, Morris H.
Probability and Statistics,
Reading, Massachusetts: Addison-Wesley Publishing Co.,
Elton, Edwin J. and Martin J. Gruber.
Modern Portfolio Theory and Investment Analysis,
5th edition, New
York: John Wiley & Sons, Inc., 1995.
Handbook of Mortgage Backed Securities,
6th edition, New York: McGraw-Hill, 2001.