{"product_id":"option-trading-pricing-and-volatility-strategies-and-techniques-445-wiley-trading-9780470497104","title":"Option Trading Pricing and Volatility Strategies","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003e*          Option Trading, is the first comprehensive guide to trading options covering historical background, to contract types and market structure, to volatility measurement and forecasting, options strategies, and hedging techniques.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eProfessional Trading xii\u003c\/p\u003e \u003cp\u003eThe Role of Mathematics xiv\u003c\/p\u003e \u003cp\u003eThe Structure of this Book xvi\u003c\/p\u003e \u003cp\u003eAcknowledgments xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1 History 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary 6\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2 Introduction to Options 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOptions 9\u003c\/p\u003e \u003cp\u003eSpecifications for an Option Contract 9\u003c\/p\u003e \u003cp\u003eUses of Options 11\u003c\/p\u003e \u003cp\u003eMarket Structure 14\u003c\/p\u003e \u003cp\u003eSummary 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3 Arbitrage Bounds for Option Prices 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAmerican Options Compared to European Options 25\u003c\/p\u003e \u003cp\u003eAbsolute Maximum and Minimum Values 25\u003c\/p\u003e \u003cp\u003eSummary 39\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4 Pricing Models 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGeneral Modeling Principles 42\u003c\/p\u003e \u003cp\u003eChoice of Dependent Variables 45\u003c\/p\u003e \u003cp\u003eThe Binomial Model 48\u003c\/p\u003e \u003cp\u003eThe Black-Scholes-Merton (BSM) Model 55\u003c\/p\u003e \u003cp\u003eSummary 61\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5 The Solution of theBlack-Scholes-Merton (BSM) Equation 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDelta 67\u003c\/p\u003e \u003cp\u003eGamma 72\u003c\/p\u003e \u003cp\u003eTheta 76\u003c\/p\u003e \u003cp\u003eVega 80\u003c\/p\u003e \u003cp\u003eSummary 88\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6 Option Strategies 89\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eForecasting and Strategy Selection 89\u003c\/p\u003e \u003cp\u003eThe Strategies 93\u003c\/p\u003e \u003cp\u003eSummary 116\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7 Volatility Estimation 117\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefining and Measuring Volatility 119\u003c\/p\u003e \u003cp\u003eForecasting Volatility 129\u003c\/p\u003e \u003cp\u003eVolatility in Context 132\u003c\/p\u003e \u003cp\u003eSummary 136\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8 Implied Volatility 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Implied Volatility Curve 138\u003c\/p\u003e \u003cp\u003eParameterizing and Measuring the Implied Volatility Curve 142\u003c\/p\u003e \u003cp\u003eThe Implied Volatility Curve as a Function of Expiration 145\u003c\/p\u003e \u003cp\u003eImplied Volatility Dynamics 146\u003c\/p\u003e \u003cp\u003eSummary 151\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9 General Principles of Trading and Hedging 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEdge 154\u003c\/p\u003e \u003cp\u003eHedging 156\u003c\/p\u003e \u003cp\u003eTrade Sizing and Leverage 158\u003c\/p\u003e \u003cp\u003eScalability and Breadth 163\u003c\/p\u003e \u003cp\u003eSummary 164\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10 Market Making Techniques 165\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMarket Structure 166\u003c\/p\u003e \u003cp\u003eMarket Making 169\u003c\/p\u003e \u003cp\u003eTrading Based on Order-Book Information 181\u003c\/p\u003e \u003cp\u003eSummary 189\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11 Volatility Trading 191\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHedging 192\u003c\/p\u003e \u003cp\u003eHedging in Practice 193\u003c\/p\u003e \u003cp\u003eThe P\/L Distribution of Hedged Option Positions 203\u003c\/p\u003e \u003cp\u003eSummary 213\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12 Expiration Trading 215\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePinning 215\u003c\/p\u003e \u003cp\u003ePin Risk 219\u003c\/p\u003e \u003cp\u003eForward Risk 221\u003c\/p\u003e \u003cp\u003eExercising the Wrong Options 221\u003c\/p\u003e \u003cp\u003eIrrelevance of the Greeks 223\u003c\/p\u003e \u003cp\u003eExpiring at a Short Strike 224\u003c\/p\u003e \u003cp\u003eSummary 225\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 13 Risk Management 227\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExample of Position Repair 228\u003c\/p\u003e \u003cp\u003eInventory 232\u003c\/p\u003e \u003cp\u003eDelta 234\u003c\/p\u003e \u003cp\u003eGamma 234\u003c\/p\u003e \u003cp\u003eVega 238\u003c\/p\u003e \u003cp\u003eCorrelation 240\u003c\/p\u003e \u003cp\u003eRho 242\u003c\/p\u003e \u003cp\u003eStock Risk: Dividends and Buy-in Risk 242\u003c\/p\u003e \u003cp\u003eThe Early Exercise of Options 243\u003c\/p\u003e \u003cp\u003eSummary 248\u003c\/p\u003e \u003cp\u003eConclusion 249\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX A Distributions 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExample 253\u003c\/p\u003e \u003cp\u003eMoments and the “Shape” of Distributions 254\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX B Correlation 263\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGlossary 271\u003c\/p\u003e \u003cp\u003eIndex 285\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default 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