Option Volatility & Pricing Workbook: Practicing Advanced Trading Strategies and Techniques

Auteur

McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide

Texte du rabat

Raise your options investing game to a new level through smart, focused practice For decades, Sheldon Natenberg's Option Volatility & Pricing has been helping investors better understand the complexities of the option market with his clear and comprehensive explanation of trading strategies and risk management. Now, you can raise your performance to a higher level by practicing Natenberg's methods before you enter the market. Filled with hands-on exercises designed to dramatically increase your knowledge and build your confidence, The Option Volatility and Pricing Workbook provides the necessary tools from which to build a successful options portfolio. Each exercise is preceded by clear description of the principle at hand, and each concludes with in-depth explanations of the correct answers. Hundreds of exercises cover such topics as: .Contract Settlement and Cash Flow.Expiration Profit & Loss.Theoretical Pricing.Volatility.Dynamics of Risk.Synthetic Pricing and Arbitrage.Hedging Strategies.Models and the Real World Success in option markets requires the ability to adapt to constantly changing market conditions. This ability can only be achieved through a full and intimate understanding of the principles of option evaluation, strategy selection, risk management, and market dynamics. Whether you're a professional or novice trader, a market maker or training manager-The Option Volatility and Pricing Workbook is an invaluable tool for achieving success in this famously tough market.

Contenu

Introduction1: Contact Settlement and Cash Flow2: Forward Pricing3: Contract Specifications and Terminology4: Expiration Profit and Loss5: Theoretical Evaluation6: Volatility7: Risk Measurement8: Delta Neutral Positions and Dynamic Hedging9: The Dynamics of Risk10: Spreading Strategies11: Synthetic Equivalents12: Synthetic Pricing and Arbitrage13: Early Exercise of American Options14: The Black-Scholes Model15: Binomial Pricing16: Hedging Strategies17: Models and the Real World18: Skewness and Kurtosis19: Stock Indexes20: Risk AnalysisAppendix: Useful Formulas and RelationshipsAnswer Key