Table of Contents

• 1. Introduction
• 2. Mechanics of futures markets
• 3. Hedging strategies using futures
• 4. Interest rates
• 5. Determination of forward and futures prices
• 6. Interest rate futures
• 7. Swaps
• 8. Securitization and the credit crisis of 2007
• 9. Mechanics of options markets
• 10. Properties of stock options
• 11. Trading strategies involving options
• 12. Introduction to binomial trees
• 13. Valuing stock options: The Black--Scholes--Merton model
• 14. Employee stock options
• 15. Options on stock indices and currencies
• 16. Futures options
• 17. The Greek letters
• 18. Binomial trees in practice
• 19. Volatility smiles
• 20. Value at risk
• 21. Interest rate options
• 22. Exotic options and other nonstandard products
• 23. Credit derivatives
• 24. Weather, energy, and insurance derivatives
• 25. Derivatives mishaps and what we can learn from them
• Answers to Quiz Questions
• Glossary of terms
• DerivaGem software
• Major exchanges trading futures and options
• Tables for N(x)
• Index