Page 15 (in Chapter 2), second line of the proof of Lemma 2.2.3: V_t should be V_0. (Corrected January 29, 2003).

Page 17 (in Chapter 2), line 14: psi should be phi. (Corrected January 27, 2003).

Page 21 (in Chapter 2), line 5: the conditioning should be on the sigma algebra associated with time t, not t+1. (Corrected January 25, 2003).

In Notes to Exercise 7 (in Chapter 2), (N1) line 4: 0.019 should be 0.0119. (Corrected February 3, 2003).

Equations (3.36), (3.37), (3.55), (3.56), (3.59) should have V_0^*(phi) rather than V_0 or V_0(phi). (Corrected February 10, 2003).