This wikibook is devoted to detailing the methods for trading and evaluating financial derivatives, such as futures and options. This wikibook assumes a strong grasp of differential equations and some understanding of statistics. The ideas introduced will not make you into a good trader. They will merely provide you with some of the tools that derivatives traders use.

Detailed contents list

Chapter 1 ~ Introduction

Chapter 2 ~ Basic Derivatives Contracts

Forwards
Futures
Swaps
Options
Advanced Structures

Chapter 3 ~ Pricing of Derivatives

Chapter 4 ~ Derivatives in Risk Management

Chapter 5 ~ Real Options

References ~ References

Appendix I ~ Notions of Probability Theory

Appendix II ~ Notions of Stochastic Calculus

References

Fischer Black, "The pricing of commodity contracts", The Journal of Financial Economics, 3 (1976), pp. 167–179.

Stephen A. Ross, "Neoclassical Finance (Princeton Lectures in Finance)", Princeton University Press, 2004 [1].