Offers guidance on the risk/reward trade-off of options, covering all the different types, including stock options, foreign exchange options, options on futures and options on stock indexes. The book focuses on the tools necessary for a dynamic analysis of options valuation, trading and management.
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The third edition of Options is a comprehensive look at the most simple to the more complex use and structure of options. Presented in a non-mathematical format, the reader will be able to understand how options are priced, how they are traded and what their payoffs might be.
Although there is a significant discussion of American options, there is also extensive coverage of foreign currency options including European options as well. A new chapter covering exotic options has been added to allow the reader to explore some of the more contemporary and complex class of options.
The book is accompanied by an IBM-PC compatible program called OPTION! This program consists of nine modules and can compute all of the model prices and examples in the book. The more than 50 exercises can also be computed using the OPTION! software.
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