Option Pricing: Black-Scholes Made Easy (Wiley Trading) (Paperback)

by Jerry Marlow (Author) "Black-Scholes Made Easy runs on Windows at a screen resolution of 800 x 600..." (more)
Key Phrases: color deciles, potential price paths, weighted net present value, Simulate Price Change, Call Option Price, Calculate Black-Scholes Value (more...)

Editorial Reviews

Review
"I have tried Jerry Marlow's B-S Made Easy and plan to make it a requirement for my investments classes. Its animations provide intuitively clear visual explanations of the fundamental nature of stock market risk. It is an ideal complement to textbooks such as my own (Bodie, Kane, and Marcus, Investments). I have been using my own Excel simulations to illustrate this material in the past, but Marlow's animations blow mine away. Simply wonderful stuff!!" (Zvi Bodie, Professor of Finance Boston University School of Management)

Product Description
"A joy to use. . . . [of] enormous value as a teaching tool for students, novice traders, and those who suddenly find themselves in need of a reference for option behavior."–Futures Magazine

"The animation is a good one. A deep insight into the price process pops out clearly. In my next semester course Black-Scholes Made Easy will be a useful tool for giving students the necessary intuitive view of the matter."–Professor Lucio Geronazzo, Mathematical Models for Financial Markets Il Dipartimento di Matematica per le Decisioni, Università degli Studi di Firenze

"[S]imply the best. It makes every part of Black-Scholes so understandable. I knew Black-Scholes’ option pricing model was important and use it every day in my trading, but never knew why or how it worked. [This] book and CD-ROM provided me with a clear understanding of the model, and best of all, all I needed to understand the model was a basic mathematical background and some common sense."–Dong-Wook Kim, Futures & Options Trader Equity & Derivatives Team, Hanwha Securities Co., Ltd

In 1997, the Nobel Prize in Economics was awarded for the work that led to the development of Black-Scholes Options Pricing theory. Black-Scholes has become the dominant way of understanding and exploiting relationships among option prices, stock forecasts, and expected stock market volatility. Now, this accessible book and CD-ROM tutorial provides traders, investors, and finance students with an intuitive, interactive approach to understanding and using the Black-Scholes model.

Integrating text and interactive computer animations and simulations that are presented in a straightforward manner, Option Pricing: Black-Scholes Made Easy teaches you the fundamentals of option valuation and dramatically shortens the learning curve for mastering and applying the theory and its analytic capabilities. Here is a sophisticated way of thinking made available to those who do not have the background necessary to do Nobel Prize—winning mathematics. You will be able to understand easily and intuitively the concepts that drive the Black-Scholes model.

From making it easy for you to see and understand that "every financial forecast is a probability distribution" to tackling myths about options pricing, calculating options’ expected returns, and providing a simple, low-risk options strategy, Option Pricing: Black-Scholes Made Easy demystifies this invaluable and profitable tool, shows you your investment odds, and teaches you how to take advantage of them.

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Product Details

• Paperback: 352 pages
• Publisher: Wiley; Pap edition (December 4, 2008)
• Language: English
• ISBN-10: 0471436410
• ISBN-13: 978-0471436416
• Product Dimensions: 10.7 x 8.3 x 0.8 inches
• Shipping Weight: 1.8 pounds (View shipping rates and policies)
• Average Customer Review: 4.6 out of 5 stars See all reviews (7 customer reviews)
• Amazon.com Sales Rank: #607,933 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

16 of 16 people found the following review helpful:

5.0 out of 5 stars Can't praise this interactive book highly enough, May 9, 2002

By	I.P. Knightley (In my Taxi) - See all my reviews

Any student or trainee having to study this topic really should buy this tutorial.

Having a degree in Mathematics and a professional accountancy qualification did not prepare me for the explanations of Black Scholes to be found in most text books.

They may have got a Nobel prize for their option pricing model but Black and Scholes were never going to get an award for clarity of explanation.

Having grappled with this area for a few months, I decided I needed a little more innovative help; hence my purchase of Jerry Marlow's interactive tutorial.

Two days later and I feel I could go for the next Nobel prize myself!

So many things click into place so quickly, it's marvellous.

Jerry gives his email address which I had to resort to for one query. He answered most helpfully within a couple of hours.

I suspect that it helps to have had an overview appreciation of the area before starting the tutorial but this shouldn't deter first timers from starting with this.

9 of 9 people found the following review helpful:

4.0 out of 5 stars Informative book read..., August 14, 2002

By	Vijay Maniar "vijay_maniar" (Mumbai,India) - See all my reviews

I was skeptical to buy it since there were more than 100 different books available on options... but I am glad I choose this book. Its easy and the software developed beats anything I have seen yet... All the free softwares available are excel based but do not offer such insight on the subject as this book.
I would strongly recommend it to anyone. Only hitch is that the software is bit slow to run but it performs...

8 of 8 people found the following review helpful:

5.0 out of 5 stars UNDERSTAND OPTION-PRICING TODAY!, November 21, 2001

By	Michael Buchanan "Creative reader" (Alpharetta, GA United States) - See all my reviews (REAL NAME)

From the beginning pages, the explanations are flowing and account for all levels of competency in options, the stock market and the computer skills needed to follow the animations. When you finish the very readable book, you will no longer need to depend on others for advice; you become your own advisor. The animations are excellent while the mathematical concepts are carefully explained. I now have confidence in my knowledge and my decisions. Hats off to Mr. Marlow!