Description
This book covers the fundamentals and essentials of options, concerning both plain vanilla contracts and exotics. The topics range from the basics, via valuation, to the Greek variables. It is set out how an option can be used as instrument to speculate, or as hedging tool. Furthermore, it is explained how positions are set up and can be managed. Insight is provided to how pricing takes place and which factors impact the option premium. Attention is also given to option valuation models. Furthermore, the put-call-parity is set out, as much as synthetics. It is also explained what Delta, Vega, Theta and Rho concern, as well as second order risk parameters, like Gamma. Altogether, this book provides all the tools you need to familiarise with this type of derivatives contracts.
