The theory of asset pricing has grown markedly more sophisticated since the early 1980s, with the application of powerful mathematical tools such as probability theory, stochastic processes and numerical analysis. The main goal of this text is to provide a systematic exposition, with practical applications, of the no-arbitrage theory for asset pricing in financial engineering in the framework of a discrete time approach. Useful as a textbook on financial asset pricing, the book should also appeal to practitioners in financial and related industries, as well as to students in MBA or graduate/advanced undergraduate programs in finance, financial engineering, financial econometrics, or financial information science.