Derivatives Essentials: An Introduction to Forwards, Futures, Options and Swaps (Wiley Finance) BY ARON GOTTESMAN

In Forex Books Reviews by

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

Preface xiii


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