Dynamic Hedging: Managing Vanilla and Exotic Options and over one million other books are available for Amazon Kindle. Learn more
Buy New
$67.51
Qty:1
  • List Price: $120.95
  • Save: $53.44 (44%)
In stock on April 20, 2014.
Order it now.
Ships from and sold by Amazon.com.
Gift-wrap available.
Add to Cart
Trade in your item
Get a $37.39
Gift Card.
Have one to sell?
Flip to back Flip to front
Listen Playing... Paused   You're listening to a sample of the Audible audio edition.
Learn more
See all 2 images

Dynamic Hedging: Managing Vanilla and Exotic Options Hardcover

ISBN-13: 072-3812152803 ISBN-10: 0471152803 Edition: 1st

See all 4 formats and editions Hide other formats and editions
Amazon Price New from Used from Collectible from
Kindle
"Please retry"
Hardcover
"Please retry"
$67.51
$67.51 $54.00
Paperback
"Please retry"

Free%20Two-Day%20Shipping%20for%20College%20Students%20with%20Amazon%20Student



Frequently Bought Together

Dynamic Hedging: Managing Vanilla and Exotic Options + Option Volatility & Pricing: Advanced Trading Strategies and Techniques
Price for both: $102.22

One of these items ships sooner than the other.

Buy the selected items together

NO_CONTENT_IN_FEATURE

Sell Your Books
Get up to 75% back when you sell your books on Amazon. Ship your books for free and get Amazon.com Gift Cards. Learn more.

Product Details

  • Hardcover: 528 pages
  • Publisher: Wiley; 1 edition (January 14, 1997)
  • Language: English
  • ISBN-10: 0471152803
  • ISBN-13: 978-0471152804
  • Product Dimensions: 10.2 x 7.3 x 1.2 inches
  • Shipping Weight: 2.1 pounds (View shipping rates and policies)
  • Average Customer Review: 4.0 out of 5 stars  See all reviews (52 customer reviews)
  • Amazon Best Sellers Rank: #50,022 in Books (See Top 100 in Books)

Editorial Reviews

From Publishers Weekly

If the dot-com bubble was an age of unabashed risk-taking, the prolonged hangover from that binge has fostered a period of risk aversion; this snappily titled volume is a detailed text of tools that financial organizations can use to hedge even the most minute financial activity. Crafted by an option trader who's slugged it out in the international banking netherworld of derivatives risk, this book tears apart the heady instruments of risk management. This no modern financial history for the business-minded; rather, it's a recipe book for pointy-heads who live deep in the nervous system of the global financial system. Taleb explores the differences between European binary options, Asian options and American single binary options, including a case study on "the ravages of time." The book jacket proclaims a text "in plain English," but the book is steeped in jargon and concepts targeted to a reader well familiar with the arcane world of the options market.
Copyright 2002 Reed Business Information, Inc.

From the Publisher

Written by a leading options trader and derivatives risk advisor to global banks and exchanges, this book provides a practical, real-world methodology for monitoring and managing all the risks associated with portfolio management. Fills a big gap in investment literature--the only book to share complex options trading strategies and advanced risk management methods with trading professionals.

More About the Author

Nassim Nicholas Taleb has devoted his life to problems of uncertainty, probability, and knowledge. He spent two decades as a trader before becoming a philosophical essayist and academic researcher. Although he now spends most of his time either working in intense seclusion in his study, or as a flâneur meditating in cafés across the planet, he is currently Distinguished Professor of Risk Engineering at New York University's Polytechnic Institute. His main subject matter is "decision making under opacity", that is, a map and a protocol on how we should live in a world we don't understand.

His works are grouped under the general title Incerto (latin for uncertainty), composed of a trilogy accessible in any order (Antifragile, The Black Swan, and Fooled by Randomness) plus two addenda: a book of philosophical aphorisms (The Bed of Procrustes) and a freely available Technical Companion. Taleb's books have been published in thirty-three languages.

Taleb believes that prizes, honorary degrees, awards, and ceremonialism debase knowledge by turning it into a spectator sport.

""Imagine someone with the erudition of Pico de la Mirandola, the skepticism of Montaigne, solid mathematical training, a restless globetrotter, polyglot, enjoyer of fine wines, specialist of financial derivatives, irrepressible reader, and irascible to the point of readily slapping a disciple." La Tribune (Paris)

A giant of Mediterranean thought ... Now the hottest thinker in the world", London Times

"The most prophetic voice of all" GQ

Customer Reviews

As a word, this book is very worth reading!
Xiang Yi
Overall, a very good book and I would recommend it to any beginning trader that is looking to advance.
Dan Chemistruck
Great book, very easy read as it is written in a conversational tone.
Mr. Daniel Campos

Most Helpful Customer Reviews

74 of 78 people found the following review helpful By Christopher Hefele on March 7, 2004
Format: Hardcover
This book provides a healthy dose of practical wisdom for options traders so that they don't blindly follow their mathematical models into oblivion. The author (Taleb) has a PhD in finance, but also has traded in the pits, he knows both theory and practice and where they diverge.
Taleb focuses on hedging, which is a trader's main task when running a large portfolio of options. Instead of using a flood of equations, Taleb relies on charts, graphs, and tables to make his points. Most of the equations & heavy mathematics are relegated to the appendix, presumably because quants (or software) will price the instruments. He covers the behavior of the Greeks (delta, gamma, vega, theta, etc.) for vanilla options as well as behavior of exotic options, and delves into the practicalities of volatility, hedging at discontinuities, and various other topics.
The book is very popular on trading desks, and although I found it pretty good, I didn't find it to be outstanding. Also, notably, the book does NOT cover credit & interest rate derivatives at all; hopefully this will be corrected in the next edition.
So if you need a book on the practicalities of hedging a portfolio of vanilla/exotic options, then get this book. On the other hand, if you want some basic options theory, or want to focus more in pricing, or need a basic introduction, look elsewhere (perhaps to Hull's or Wilmott's books).
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
53 of 55 people found the following review helpful By Nigel N. on February 23, 2000
Format: Hardcover
I would not recommend this book to build up an academic background but rather to develop an understanding and an intuition of how dynamic options are. As a hedge fund options trader this book has been very valuable to me to validate my own observations and where necessary to correct those observations, which at the time seemed correct, but which the author through market experience manages to convey the proper meaning. This book is not only factual but also provides you with the right frame of mind to think about options. I believe you can also use the author's experience to boost your own practical experience.
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
31 of 33 people found the following review helpful By Kevin Rosema on May 15, 2000
Format: Hardcover
Yes, this book could use an editor - there are all sorts of errors everywhere. While it makes the reading pretty tough, I think this is really one of the most useful books on options around. It's a little like Campbell/Lo/MacKinlay's book on empirical finance, but with a more experienced and real-life perspective. It's a bit refreshing after all the copycat books on option pricing that still don't contribute much beyond what Hull has written. No question, top 5 in practical finance reading.
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
21 of 22 people found the following review helpful By A Customer on November 11, 2002
Format: Hardcover
Taleb's writing style is unique, to say the least. If you can get past it, though, his material is solid gold!
The structure of the book is very disjointed and information dense. I typically read 4-5 pages, spent a day or two figuring out what nuance he was trying to communicate, and then was absolutely floored by the insight. I've read the book several times over and expect re-read it several more.
Taleb's risk management perspective is at odds with "pricing" but right-on for "risk management". He would willingly trade a small certain loss for a possibly large gain rather than vice versa. This perspective is probably consistent with most dynamic hedgers; you expect the hedge to be a drain on income but also to save you from catastrophic events.
As a non-trader implementing dynamic hedging programs, Taleb's perspective and insights have proven invaluable. I have avoided countless pitfalls into which I would otherwise have fallen. I look forward to future editions of this book!
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
23 of 25 people found the following review helpful By spilpe@wexford.com on March 23, 1999
Format: Hardcover
It is nearly impossible to write a book that is both mathematically rigorous and sufficiently down to earth to be accessible to the professional trader. This book is a step in the right direction. It maintains the mathematical accuracy and depth without bogging the reader down with technical derivation of formulae. At the same time, it is written by a trader whose experience in the real market compels him to constantly question the `nice' assumptions used to derive these formulae.
Taleb is first a market practitioner who uses models and pricing formulae to enhance trading and not the other way around. If there is a discrepancy between theory and reality he doesn't blame the markets.
The book is very personal and leaves no doubt what the author's opinion is on VAR, continuous hedging and other sacred cows of modern finance. The debacle in the financial markets in 1998 and the apologetic excuses by famous traders and theoreticians indicates that there is more than a grain of truth in Taleb's skepticism.
The importance of this book is that whether one agrees or disagrees with Taleb, it forces the reader to question his basic assumptions and rethink common truths. The book is unique: it is stylish, philosophical, literary, and if one may say so of a hardcore financial book - it is very entertaining.
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again
22 of 24 people found the following review helpful By A Customer on March 12, 2003
Format: Hardcover
this book has helped me in NUMEROUS interviews over the years... it is a book that always keeps me fresh... HOWEVER, thank god i have a solid background in derivatives - otherwise, the 107 errors i found (mathematics, definitions, explanations, etc) would have driven me to a point of complete confusion... NEVER have aloof traders edit your book - get someone who understands derivatives and is separated from the world of day-to-day trading... this book could have been the bible of understanding the risks in options - including exotic options... instead, it is just a good book... well done Taleb... but could you have been more slack with the editing?
Comment Was this review helpful to you? Yes No Sending feedback...
Thank you for your feedback. If this review is inappropriate, please let us know.
Sorry, we failed to record your vote. Please try again

Product Images from Customers

Most Recent Customer Reviews

Search
ARRAY(0x9e034450)