This wikibook is devoted to detailing the methods for trading and evaluating financial derivatives, such as futures and options. This wikibook assumes a strong grasp of differential equations and some understanding of statistics. The ideas introduced will not make you into a good trader. They will merely provide you with some of the tools that derivatives traders use.
Detailed contents list[edit | edit source]
- Chapter 1 ~ Introduction
- Chapter 2 ~ Basic Derivatives Contracts
- Advanced Structures
- Chapter 3 ~ Pricing of Derivatives
- Chapter 4 ~ Derivatives in Risk Management
- Chapter 5 ~ Real Options
- References ~ References
- Appendix I ~ Notions of Probability Theory
- Appendix II ~ Notions of Stochastic Calculus
References[edit | edit source]
Fischer Black, "The pricing of commodity contracts", The Journal of Financial Economics, 3 (1976), pp. 167–179.
Stephen A. Ross, "Neoclassical Finance (Princeton Lectures in Finance)", Princeton University Press, 2004 .