Options: An Introduction

By Robert W. Kolb $9.99 $2.76

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Paperback: 384 pages Publisher: Wiley; 2 edition (May 15, 1995) Language: English ISBN-10: 1878975366 ISBN-13: 978-1878975362 Product Dimensions: 10.2 x 7.2 x 1 inches Shipping Weight: 1.6 pounds

LIKE NEW!! Excellent condition, clean and unmarked pages. Spiral Binding very firm and straight. Not a Remainder ~ Not Ex-Library ~ From Private Collection

Description Options: An Introduction is a completely revised edition which not only provides the same comprehensive introduction as the first edition, but also

includes expanded treatment of option strategies, complete treatment of option sensitivities (DELTA, etc. ) thorough treatment of European and American options in two separate chapters, and expanded treatment of options on futures, foreign currency options, and options on stock indexes. As with the first edition, the text comes with OPTION! software. Major improvements to the software include: The ability to write graphs to the hard drive for printing European and American binomial model pricing with dividends (proportional payouts, continuous payouts, and specific dollar payouts) The Barone-Adesi and Whaley analytic approximation for American options (with graphs) Exact American option pricing (with graphs) Complete analysis of option sensitivities (with graphs). *Options software not included Table Of Contents Preface Acknowledgments Chapter 1 The Options Market Introduction What Is an Option? An Option Example Moneyness American and European Options Why Trade Options? The Option Contract The Options Market Option Trading Procedures The Clearinghouse Margins Commissions ix (4) xiii 1 (26) 1 2 2 3 4 4 5 5 (1) (1) (1) (1) (1) (1) (1) (7)

12 (6) 18 (1) 19 (2) 21 (1)

Taxation The Organization of the Text OPTION! Software Summary Questions and Problems Notes Chapter 2 Option Payoffs and Strategies Introduction Stocks and Bonds Arbitrage Option Notation European and American Option Values at Expiration Buy or Sell a Call Option Call Options at Expiration and Arbitrage Buy or Sell a Put Option Moneyness Option Combinations Combining Options with Bonds and Stocks Summary Questions and Problems Notes

21 (2) 23 (1) 24 (1) 24 (1) 24 (1) 25 (2) 27 (52) 27 (1) 28 (2) 30 (1) 31 (1) 32 (1) 32 (4) 36 (1) 37 (3) 40 (1) 41 (19) 60 (14) 74 (1) 74 (2) 76 (3)

Chapter 3 Bounds on Option Prices Introduction The Boundary Space for Call and Put Options Relationships Between Call Option Prices Relationships Between Put Option Prices Option Prices and the Interest Rate Option Prices and Stock Price Movements Option Prices and the Riskiness of Stocks Summary Questions and Problems Notes Chapter 4 European Option Pricing Introduction The Single-Period Binomial Model The Multi-Period Binomial Model Binomial Put Option Pricing Stock Price Movements The Binomial Approach to the Black-Schools Model The Black-Scholes Option Pricing Model Inputs for the Black-Scholes Model European Options and Dividends

79 (32) 79 (1) 79 (3) 82 (8) 90 (9) 99 (2) 101(3) 104(2) 106(1) 107(1) 108(3) 111(42) 111(1) 111(4) 115(4) 119(1) 120(5) 125(1) 126(4) 130(4) 134(10)

Tests of the Option Pricing Model Summary Questions and Problems Notes Chapter 5 Option Sensitivities and Option Hedging Introduction Option Sensitivities in the Merton and Black-Scholes Models DELTA DELTA-Neutral Positions THETA VEGA RHO GAMMA Creating Neutral Portfolios Option Sensitivities and Option Trading Strategies Summary Questions and Problems Note Chapter 6 American Option Pricing Introduction

144(2) 146(1) 147(1) 148(5) 153(34) 153(1) 153(2) 155(4) 159(2) 161(2) 163(1) 164(1) 165(5) 170(2) 172(12) 184(1) 185(1) 186(1) 187(28) 187(1)

American versus European Options Pseudo-American Call Option Pricing Exact American Call Option Pricing Analytical Approximations of American Option Prices The Binomial Model and American Option Prices Summary Questions and Problems Notes Chapter 7 Options on Stock Indexes, Foreign Currency, and Futures Introduction European Option Pricing Option Sensitivities Pricing American Options Summary Questions and Problems Notes Chapter 8 The Options Approach to Corporate Securities Introduction Equity and a Pure Discount Bond Senior and Subordinated Debt

187(4) 191(1) 192(4) 196(4) 200(2) 212(1) 213(1) 214(1) 215(26) 215(1) 216(7) 223(2) 225(2) 237(2) 239(1) 239(2) 241(14) 241(1) 242(4) 246(1)

Callable Bonds Convertible Bonds Warrants Summary Questions and Problems Notes Chapter 9 Exotic Options Introduction Assumptions of the Analysis and the Pricing Environment Forward-Start Options Compound Options Chooser Options Barrier Options Binary Options Lookback Options Average Price Options Exchange Options Rainbow Options Summary Questions and Problems Notes

247(2) 249(1) 250(1) 251(1) 252(1) 253(2) 255(48) 255(1) 256(1) 256(2) 258(4) 262(4) 266(8) 274(7) 281(3) 284(4) 288(2) 290(9) 299(1) 300(1) 301(2)

OPTION! Installation and Quick Start Exercises for OPTION! Appendix Index

303(12) 315(24) 339(2) 341

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