About the book
This book is a handbook on derivative securities on the stock market. The book prioritizes discussions about how it works, rather than what it is. Since pricing and valuation is a complicated concept, it is vital to understand its nature. The language is simplified and explained in a direct manner to cater to even the common folks with no prior knowledge or understanding about the pricing and valuation of securities.
This book aims to help the readers internalize various aspects of derivative securities, dig into nature, offset, and pricing of sensitivities, understand how products are priced or valued, and evaluate trading strategies accompanied by a demonstration of each product presented.
Most people say that if you truly understood something, you will be able to explain it. This is possibly the case for readers of this book as complex topics are discussed in the simplest language. The Derivatives market is complex, and some people take business courses to learn it. The book aims to help curious people understand the nature of derivatives, especially on pricing and valuation. It explains the concepts with ease and discusses each terminology in a way that even the common reader can internalize.
About the Author
ARON GOTTESMAN is a professor and department chair of finance and economics in the Lubin School of Business at Pace University. He teaches derivative securities, asset management, and financial markets. He holds workshops on derivative securities to bulge financial institutions.
Table of Contents
About the Author
Part One: Introduction to Forwards, Futures, and Options
Chapter 1 Forwards and Futures
Chapter 2 Call Options
Chapter 3 Put Options
Part Two: Pricing and Valuation
Chapter 4 Useful Quantitative Concepts
Chapter 5 Introduction to Pricing and Valuation
Chapter 6 Understanding Pricing and Valuation
Chapter 7 The Binomial Option Pricing Model
Part Three: The Greeks
Chapter 8 Introduction to the Greeks
Chapter 9 Understanding Delta and Gamma
Chapter 10 Understanding Vega, Rho, and Theta
Part Four: Trading Strategies
Chapter 11 Price and Volatility Trading Strategies
Chapter 12 Synthetic, Protective, and Yield-Enhancing Trading Strategies
Chapter 13 Spread Trading Strategies
Part Five: Swaps
Chapter 14 Interest Rate Swaps
Chapter 15 Credit Default Swaps, Cross-Currency Swaps, and Other Swaps
Appendix: Solutions to Knowledge Check Questions