Exotic Options and Advanced Pricing Models with Python: Beyond Black-Scholes: Barrier, Asian, and American Options with Monte Carlo and PDE Methods

By Hayden Van Der Post

Beyond Black-Scholes: Barrier, Asian, and American Options with Monte Carlo and PDE Method

Vanilla options are only the beginning. In today's global markets, traders and quants rely on exotic derivatives, barrier, Asian, lookback, and American options-to structure deals, hedge complex exposures, and capture hidden opportunities.

Exotic Options and Advanced Pricing Models with Python is your complete guide to understanding, modeling, and implementing these instruments using modern quantitative methods and real Python code. Whether you're a quant professional or a self-taught trader, this book equips you with the tools to expand your skillset and compete at the highest levels of options trading.

What You'll Learn

Exotic Payoffs Demystified: Barrier, Asian, lookback, chooser, and more explained with clarity.

Numerical Pricing Techniques: Binomial/trinomial trees, finite difference methods (PDE/FDM), and lattice models.

Monte Carlo Simulations: Path-dependent pricing for complex derivatives.

Volatility Surface Integration: Modeling skew, smile, and term structure.

Python Implementation: Step-by-step code for pricing exotic contracts and validating results.

Tools and Frameworks Covered

Python (NumPy, Pandas, SciPy, Matplotlib)

Monte Carlo engines for path-dependent options

PDE solvers for American and early-exercise features

Data handling for volatility surfaces and market calibration

Who This Book Is For

Traders looking to go beyond vanilla calls and puts

Quantitative analysts expanding into exotic derivatives

Python developers breaking into quantitative finance

Risk managers seeking better hedging models

• Format: Paperback
• Language: English
• ISBN: B0FTVW52N4
• ISBN13: 9798268329148
• Release Date: October 2025
• Publisher: Independently Published
• Length: 672 Pages
• Weight: 2.53 lbs.
• Dimensions: 1.4" x 7.0" x 10.0"