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" Options and options trading : "
Robert W. Ward.
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BL
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| Record Number
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871948
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| Main Entry
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Ward, Robert W.
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| Title & Author
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Options and options trading : : a simplified course that takes you from coin tosses to Black-Scholes /\ Robert W. Ward.
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| Publication Statement
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New York :: McGraw-Hill,, ©2004.
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| Page. NO
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1 online resource (xv, 413 pages) :: illustrations
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| ISBN
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0071442979
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: 1280230444
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: 9780071442978
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: 9781280230448
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0071432094
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| Contents
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Cover Terms of Use Want to learn more? Table of Contents Foreword Preface Part One -- The Basics Chapter 1 -- What a Derivative Is and What It Isnt Introduction Where We Are Headed Getting Comfortable With Derivatives A Fuzzy Area: What Is and Isnt a Derivative? Other Nonderivatives: Portfolios, Mutual Funds, and the Dow Jones Averages The Origin Of Futures and Forwards Derivatives Today Options Three Market Time Frames: Cash, Forward, and Futures Comparing Futures and Forwards Other More Advanced Derivatives Single Stock Futures Key Concepts Review Things to Think About Questions Chapter 2 -- Binomials and Coin Tosses Why Coin Tosses? Probability and Gamblers Analysis of Coin Tosses Key Concepts Review Things to Think About Questions Chapter 3 -- Pascals Triangle and the Binomial Theorem Chapter Overview Pascals Triangle and Its Uses How to Use the Binomial Theorem Key Concepts Review Things to Think About Questions Chapter 4 -- Distributions Are the Key -- What Are Distributions? Six Different Coin Toss Histograms Telling the Future A Gaggle of Geese, a Pod of Whales ... A Family Tree Of Distributions? The Distribution as Answer Table Key Concepts Review Things to Think About Questions Chapter 5 -- Probabilities, Odds, and Payoffs How to Calculate Fair Payoffs Expected Results (Mathematical Expectations) Key Concepts Review Things to Think About Questions Chapter 6 -- Writing Our First Option Variation 1: Pay for 4H Only Variation 2: Pay for 3H or 4H Variation 3: Pay for 2H or 3H or 4H Creating Our First Option Creating Our Second Option Creating an Exotic (Path Dependent) Option Key Concepts Review Things to Think About Questions Chapter 7 -- Sectors, Strike Prices, and Summation Signs Math Tutorial: George Foremanand Summations Key Concepts Review Things to Think About Questions Chapter 8 -- The Fair Price of an Option Key Concepts Review Things to Think About Questions Chapter 9 -- Our First Stock Option: IBM An Option on IBM Key Concepts Review Things to Think About Questions Chapter 10 -- Statistics: The 15-Minute Cram Course Where Predictions Come From The Past is Prologue to the Future Statistics: Measuring the Past Key Concepts Review Things to Think About Questions Chapter 11 -- Dow Jones versus Coin Tosses Discrete versus Continuous Binomial Distribution versus Normal Distribution Cumulative Distribution Function: How To Get Probabilities from the Normal Curve Standard Deviations and the Normal Curve Key Concepts Review Things to Think About Questions Chapter 12 -- Turning Spot Prices into Forward Prices: S X eRT Spot, Cash, Forward, and Futures: Whats the Difference? The Cutoff Between Spot and Forward The Forward Price Curve A Simple Forward Formula Components of the Indifference Spread The Ultimate Interest Rate Multiplier eRT Key Concepts Review Things to Think About Questions Part Two -- The Formula Chapter 13 -- Skeleton for an Option Formula The Key To All Options: Probabilities and Payoffs Getting Down to Probabilities Bonus Tidbits Key Concepts Review Things to Think About Questions Chapter 14 -- Getting Comfortable with the Black-Scholes Formula Key Concepts Review Things to Think About Questions Chapter 15 -- Introducing Volatility and SKIT-V Key Concepts Review Things to Think About Questions Chapter 16 -- Pros and Cons of the Black-Scholes Formula Pros of the Black-Scholes Formula Cons of the Black-Scholes Formula Conclusion Key Concepts Review Things To Think About Questions Part Three -- Trading Chapter 17 -- A Primer on Risk and Hedging Market Risk Finding a Hedge Hedging 1000 Shares of IBM Arbitrage in The Real World No Perfect Hedges From Perfect Hedges to Cross Hedges Getting Suckered Into Cross Hedges Crude Oil: Hedging Libya versus New York Avoid Going Bananas Managers and Tra.
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| Abstract
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Rho, delta, theta; distribution, probability, sigma summation: many option books seem to speak a foreign language that is beyond the skill and comprehension of most people. These books, while quite good, are filled with the complicated mathematics of statistics, probability, and the "Greeks." Probably less than half of all options traders actually understand the math underlying the options market. Options and Options Trading translates this foreign language into plain English in a textbook-like setting. Based on the author's trader training program at Merrill Lynch and the options course he taught at NYU, this primer explains options from the ground up, starting with the example of a simple coin toss and working up to a complete and clear explanation of the famous Black-Scholes formula. The author explains the math using a methodical step-by-step process. The book does not provide advanced trading strategies, but rather explains the rules of the game and gives an introduction into how the options market works. The book builds a foundation for trading options, showing the theory behind the trades. The author uses a variety of pedagogical techniques to help bring his points across.; There will be "Concepts for Review," discussion questions, exercises, and boxed material containing "Trading Tips" or "Rules of Thumb." Topics covered include: The five inputs into Black-Scholes; Spot market v. forwards and futures; Converting puts and calls; Pros and cons of Black-Scholes; The goal of Options and Options Trading is simple: a translation of and introduction to the complicated world of options. While there are several good books on options (including McGraw-Hill's Black-Scholes and Beyond and Option Volatility and Pricing), they tend to start at a high level that can be intimidating. This is the book to read before tackling such higher level books as Options, Futures, and Other Derivatives (Hull), Black-Scholes and Beyond (Chriss), or Option Volatility and Pricing (Natenberg).
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| Subject
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Derivative securities.
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Options (Finance)
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BUSINESS ECONOMICS-- Investments Securities-- General.
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Derivative securities.
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Options (Finance)
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| Dewey Classification
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332.64/53
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| LC Classification
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HG6024.A3W36 2004eb
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