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the first Bulgarian capital. Pliska was the capital of Bulgaria from the end of the seventh to the end of the ninth century. Its ruins are 25 km northeast of the city of Shumen in northeastern Bulgaria. Archaelogical excavations, which have been conducted since the end of the 19th century, have established that the city’s overall area was about 23 sq km. The center was dominated by a citadel with massive defensive walls, two palaces (the Great and the Small), and a basilica constructed of large stone blocks. The entire city was surrounded by an earthen bank and a moat.

Excavations have uncovered numerous architectural remains and remains of weapons, tools, ornaments, and ceramic objects. The inhabitants’ culture was predominantly Slavic, but Pliska itself, the neighboring burial mounds, and the Novi Pazar burial ground have revealed cultural elements characteristic of ancient Bulgarian tribes that came to Bulgaria from the Sea of Azov area. In 893 the capital was moved to Preslav. Pliska has been in ruins since the 17th century.


Milchev, A. “Prouchvaniia na rannoslavianskata kultura ν Bulgariia i na Pliska prez poslednite dvadeset godini.” Arkheologiia, 1964, book 3.
Mantov, D. Staroprestolni gradove. Sofia, 1973.
Stančew, S. “Pliska und Preslav. Ihre archäologische Denkmä ler und deren Erforschung.” In the collection Antike und Mittelalter in Bul-garien. Berlin, 1960.
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The Q measure is defined over a finite set of states in Harrison and Pliska (1981) and is shown to exist in an extension with infinite states by Dalang, Morton, and Willinger (1990).
Cox and Ross (1976), Harrison and Kreps (1979), and Harrison and Pliska (1981) show that the absence of arbitrage implies the existence of a probability distribution, such that securities are priced at their discounted (at the risk-free rate) expected cash flows under these risk-neutral or risk-adjusted probabilities.
Later, Harrison and Kreps (1979) and Harrison and Pliska (1981) provided a general conceptual framework to the option pricing problem based on the developed stochastic integration theory.