The Paris-Princeton Lectures in Financial Mathematics, of which this
is the second volume, will, on an annual basis, publish cutting-edge
research in self-contained, expository articles from outstanding -
established or upcoming! - specialists. The aim is to produce a series
of articles that can serve as an introductory reference for research in
the field. It arises as a result of frequent exchanges between the
finance and financial mathematics groups in Paris and Princeton. This
volume presents the following articles: "Hedging of Defaultable Claims"
by T. Bielecki, M. Jeanblanc, and M. Rutkowski; "On the Geometry of
Interest Rate Models" by T. Björk; "Heterogeneous Beliefs, Speculation
and Trading in Financial Markets" by J.A. Scheinkman, and W. Xiong.