He didn't use the easiest verbiage, so it was tough to follow at times, I will freely admit that when he got to pricing options and the binomial tree vs, the BlackScholes methods, I got pretty lost, the mathematical equations were particularly dumbfounding, I'm probably going to have to read this one a few more times before it starts to sink in, but eventually I think it will.
I don't regret reading it, though I would have preferred a nice romance novel while I was on vacation.
The book is well written and in plain English, Which considering the topic is a feat in itself, There is some complex math but not too much as the author uses simplified examples which is a plus as well.
Overall the book provides the reader with a
through understanding of derivatives, Helped me studying for my exam! Helpful, Highly informative and summarized!.
Covers:
What are the common types of derivatives Forwards, Futures, Swaps, Options and how they are traded OTC/Exchange
The rights and obligations of these derivatives
Their purposes Hedging/Speculation
Pricing of derivatives Absolute ice breaker for anyone who is willing to enter the financial derivative world.
One prominent thing about this book is that it is explained in absolutely meagre language and comprehensible to layman.
As I am novice in derivatives this book seems a really nice one to start with, From the very definition of derivatives to role of derivatives in thefinancial crisis is elaborated by the author with his master stroke of language.
This book has taken a bit time for me to complete because you can't fully understand the concepts unless you take notes parallely.
But the hedging of derivatives is not so well explained in this book so you have to refer other derivatives hedging books for that part.
Some ideas are really hard to get for the very first time but if you pore over closely you will break the surface and delve into the concepts.
Really enjoyed reading this book, Wellstructured and explained with use of relevant examples, EVERYTHING YOU NEED TO KNOW ABOUT DERIVATIVES
"All About Derivatives," Second Edition, presents the complex subject of financial derivatives with a clarity and coherence you won't find in other books.
Using realworld examples and simple language, it lucidly illustrates what derivatives are and why they are so powerful, This second edition of "All About Derivatives" provides a rocksolid foundation on: The most common contracts available to you in today's marketKey concepts such as cost of carry, settlement, valuation, and payoffProven methods for establishing fair valueHow leverage can work for youand against youThe various derivative contracts traded today, including forwards, futures, swaps, and optionsPricing methods and mathematics for determining fair valueHedging strategies for managing and reducing different types of risk
INCLUDES A BRANDNEW CHAPTER ON THE ROLEDERIVATIVES PLAYED IN THEFINANCIAL MELTDOWN
.