Financial Options: From Theory to Practice

By Stephen Figlewski, Marti Subrahmanyam, William Silber, et al.

Book Overview

Discover how to make more profitable trades! Financial Options explains option valuation theories with little math and shows you how they apply to actual trading practices and market moves. In addition to the general principles of option trading and valuation, readers will find information on specific types of financial options and valuable coverage of: The institutional and theoretical framework for understanding options and options markets. The application of option pricing models to specific types of markets; Issues that transcend any particular options market, such as liquidity costs associated with trades, techniques used to estimate volatility, and the numerical methods that must be applied to many option valuation problems.

• Format: Hardcover
• Language: English
• ISBN: 1556232349
• ISBN13: 9781556232343
• Release Date: January 1990
• Publisher: Richard d Irwin
• Length: 416 Pages
• Weight: 2.05 lbs.

Customer Reviews

Great book!

This book explains how to assign a value to options in understandable terms. Some knowledge of calculus is helpful but not necessary to grasp the concepts. Equations are given for those interested.A number of example portfolios consisting of calls and/or puts are given. Each portfolio is described in terms of aggressive or conservative, sensitivity to volatility, and performance relative to movements in the underlying stock. Graphs show the current and expiration date values of the portfolio versus the price of the underlying stock.Baxter's book, "Financial Calculus: An Introduction to Derivative Pricing", concentrates on the math. This book puts its emphasis on trading strategies.