Applied Derivatives: Options, Futures and Swaps [Paperback]

Richard Rendleman (Author)

Book Description

Publication Date: March 5, 2002 | ISBN-10: 0631215905 | ISBN-13: 978-0631215905 | Edition: 1

Applied Derivatives provides a detailed, yet relatively non-technical, treatment of the conceptual foundations of derivative securities markets' pricing and investment principles. This book draws from the most fundamental concepts of pricing for options, futures, and swaps to provide insight into the potential risks and returns from conventional option investing.

Applied Derivatives is supported by the website www.rendleman.com/book which contains course software referenced in the text and additional questions and problems as they become available.

Editorial Reviews

Review

"Rendleman provides the very best combination of theoretical grounding, applications, and intuition for serious practitioners of modern financial technology. The knowledge in this text is essential for success in today's sophisticated financial environment and forthcoming product innovations. I strongly recommend Applied Derivatives for anyone who is interested in pursuing a career in financial risk management." Stanley J. Kon, Smith Breeden Associates, Inc. <!--end-->

"Rendleman has written an excellent text. The concepts are clearly presented in a systematic way, often using novel approaches that are communicated without the need of advanced mathematics. The reader will come away, not only with a firm practical understanding of derivative markets, but also with a solid grounding in the theory which will be extremely helpful in keeping up with ongoing developments in this rapidly evolving field." Peter Ritchken, Weatherhead School of Management

"For teachers, traders, and risk managers interested in intuition and applications, Rendleman's book Applied Derivatives is an excellent choice." Robert Geske, UCLA

Book Description

Based on groundbreaking work that led to the development of the "Binomial Option Pricing Model" in 1979, this book is the culmination of 18 years of research in option pricing theory.

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Product Details

• Paperback: 400 pages
• Publisher: Wiley-Blackwell; 1 edition (March 5, 2002)
• Language: English
• ISBN-10: 0631215905
• ISBN-13: 978-0631215905
• Product Dimensions: 6 x 0.9 x 9 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #2,129,052 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

1 of 2 people found the following review helpful:

5.0 out of 5 stars An MBA's guide to Options, November 22, 2005

By 

Ganesh V Jois (New York, NY USA) - See all my reviews

This review is from: Applied Derivatives: Options, Futures and Swaps (Hardcover)

This is a very well written book from an MBA's perspective. In other words, the emphasis is more on intuition rather than the underlying mathematics of option pricing. The book in fact starts with the Binomial Tree approach to option pricing - a method that is much more intuitive and powerful compared to Black-Scholes. The author walks you through certain arbitrage relationships before developing the binomial tree approach. Black-Scholes is introduced once you have obtained a thorough understanding of the binomial tree approach. There is a decent treatment of Forwards, Futures and Swaps and a very elegant proof for how CAPM weaves into option pricing. I strongly recommend the book to anyone starting out in option pricing. Once you have developed sufficient competence with trees and formulae, you can move to Hull's book which is much more technical but provides robust treatment of exotic options.