1. Edition - October 2001
89.90 Euro
2001. XVIII, 334 Pages, Softcover
- Textbook -
ISBN-10: 0-471-43641-0
ISBN-13: 978-0-471-43641-6 - John Wiley & Sons






Sample Chapter

Short description
This groundbreaking book and CD-ROM tutorial provides traders with a uniquely accessible, interactive approach to understanding and using the Black-Scholes approach to options pricing. Integrating text and interactive computer animation it teaches readers the basics of good options trading, while dramatically shortening the learning curve for traders interested in learning Black-Scholes, delta-hedging, and other advanced trading concepts.

From the contents
The True Logic of this World is in the Calculus of Probabilities.

Getting Up and Running.

Volatility.

Every Financial Forecast is a Probability Distribution.

Black-Scholes Asumptions (Part I).

Working with Geometric or Continuously Compounded Rates of Return.

Expected Return.

How Dividends Affect Price Paths and Forecasts.

Option Outcomes, Probability Distributions, and Expected Returns.

Option Pricing.

Black-Scholes Assumptions (Part II).

Value of Early Exercise of American Options.

Black's Approximation for Valuing American Options.

Sensitivity of Option Values to Changes in Volatility, Spot Price of Underlying, Time to Expiration, and Risk-Free Rates.

Using Options to Leverage Your Expected Return.

Black-Scholes Assumptions (Part III).

Using the Animations to Assess Option Opportunities.

What We Didn't Tell You.

Using the Animation to Sell Options to Others.

Risk Management and Value at Risk.

An Investment Strategy.

Navigating Through the Animations.Index.