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Financial Derivatives

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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
  • Forwards
  • Futures
  • Swaps
  • Options
  • 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 [1].