Options are a financial instrument that allows the purchaser of the option to either buy or sell shares or commodities on a specified date in the future, but there is no obligation to do so (hence, option). The purchaser must pay a premium to the seller but should the market go against the purchaser there is no requirement to exercise the right. A unified development of the subject, presenting the theory of options in each of the different forms and stressing the equivalence between each of the methodologies.
* Demystifies some of the more complex topics.
* Derives practical, tangible results using the theory, to help practitioners in problem solving.
* Applies the results obtained to the analysis and pricing of options in the equity, currency, commodity and interest rate markets.
* Gives the reader the analytical tools and technical jargon to understand the current technical literature available.
* Provides a user-friendly reference on option theory for practicing investors and traders.