
The Mathematics of Options
Quantifying Derivative Price, Payoff, Probability, and Risk
- English
- PDF
- Available on iOS & Android
The Mathematics of Options
Quantifying Derivative Price, Payoff, Probability, and Risk
About this book
This book is written for the experienced portfolio manager and professional options traders. It is a practical guide offering how to apply options math in a trading world that demands mathematical measurement.
Every options trader deals with an array of calculations: beginners learn to identify risks and opportunities using a short list of strategies, while researchers and academics turn to advanced technical manuals. However, almost no books exist for the experienced portfolio managers and professional options traders who fall between these extremes.
Michael C. Thomsett addresses this glaring gap with The Mathematics of Options, a practical guide with actionable tools for the practical application of options math in a world that demands quantification. It serves as a valuable reference for advanced methods of evaluating issues of pricing, payoff, probability, and risk. In his characteristic approachable style, Thomsett simplifies complex hot button issues—such as strategic payoffs, return calculations, and hedging options—that may be mentioned in introductory texts but are often underserved. The result is a comprehensive book that helps traders understand the mathematic concepts of options trading so that they can improve their skills and outcomes.
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Information
Table of contents
- Foreword
- Preface
- Contents
- List of Figures
- List of Tables
- Introduction—The Variability of Derivatives Trading
- 1 Trading Goals and Objectives
- 2 The Role of Fundamentaland Technical Analysis
- 3 Pricing of the Option
- 4 The Dividend Effect
- 5 Return Calculations
- 6 Strategic Payoff: The Single-Option Trade
- 7 Strategic Payoff: Spreads
- 8 Strategic Payoff: Straddles
- 9 Probability and Risk
- 10 Option Pricing Models
- 11 Alternatives to Pricing Models
- Appendix—Formulas
- Bibliography
- Index