Review Derivatives Essentials: An Introduction to Forwards, Futures, Options, and Swaps

DESCRIPTION

Derivative Essentials is a practical handbook for more conducive and effective management of derivative securities products. With accessible and easily-grasped discussions, one will be given information on mechanisms over formulas. As this was written in a straight-forward and simple tone, it enforces education and knowledge acquisition about derivatives and securities. Though it comes with advanced mathematics lessons, its primary purpose is to develop a comprehension of motivation, rights and obligations, opportunities and exposures, terms and conventions, trading, sensitivities, pricing, and valuation of each output. 

Technical discussions are presented in a reader-friendly and straightforward tone to bring lessons on futures, swaps, options, and trading strategies. This book is not purely narrative. It also comes with visuals and excel files that comprehensively present valuation, strategies, pricing, and sensitivities. 

Derivative securities are of great complexity; that is why practitioners must develop appropriate skills and acquire adequate knowledge to have a more effective practice. It supplies understanding rather than just present facts, complete with helpful insights and real-world accounts. 

Mainly, this book was developed to facilitate discussions on:

  • Concepts behind derivative securities
  • Characteristics, pricing, and offset of sensitivities
  • Practices and applications in product pricing and valuation
  • Evaluation of trading strategies and practical examples

ABOUT THE AUTHOR

Aron Gottesman is an accomplished writer in fields of finance, derivative securities, and asset management. He previously published more than 30 books, all while being acknowledged in a different print medium. He currently works as a Professor in Finance at Pace University with Ph.D., MBA in Finance, BA in Psychology from York University, as his laudable educational accomplishments. 

TABLE OF CONTENTS

Preface

Acknowledgements

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 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

Index