Table of Contents

• Chapter 1    Introduction to Derivatives
• PART ONE   INSURANCE, HEDGING, AND SIMPLE STRATEGIES
• Chapter 2    An Introduction to Forwards and Options
• Chapter 3    Insurance, Collars, and Other Strategies
• Chapter 4    Introduction to Risk Management
• PART TWO   FORWARDS, FUTURES, AND SWAPS
• Chapter 5    Financial Forwards and Futures
• Chapter 6    Commodity Forwards and Futures
• Chapter 7    Interest Rate Forwards and Futures
• Chapter 8    Swaps
• PART THREE   OPTIONS
• Chapter 9    Parity and Other Option Relationships
• Chapter 10   Binomial Option Pricing: Basic Concepts
• Chapter 11   Binomial Option Pricing: Selected Topics
• Chapter 12   The Black-Scholes Formula
• Chapter 13   Market-Making and Delta-Hedging
• Chapter 14   Exotic Options: I
• PART FOUR   FINANCIAL ENGINEERING AND APPLICATIONS
• Chapter 15   Financial Engineering and Security Design
• Chapter 16   Corporate Applications
• Chapter 17   Real Options
• PART FIVE   ADVANCED PRICING THEORY AND APPLICATIONS
• Chapter 18   The Lognormal Distribution
• Chapter 19   Monte Carlo Valuation
• Chapter 20   Brownian Motion and Ito's Lemma
• Chapter 21   The Black-Scholes-Merton Equation
• Chapter 22   Risk-Neutral and Martingale Pricing
• Chapter 23   Exotic Options: II
• Chapter 24   Volatility
• Chapter 25   Interest Rate and Bond Derivatives
• Chapter 26   Value at Risk
• Chapter 27   Credit Risk
• Appendixes
• App. A     The Greek Alphabet
• App. B     Continuous Compounding
• App. C     Jensen's Inequality
• App. D&nb