Mathematics of Options: Quantifying Derivative Price, Payoff, Probability, and Risk

This book is a practical guide for experienced portfolio managers and professional options traders who need to apply options math in a trading world that demands mathematical measurement. It simplifies complex hot button issues and provides actionable tools for evaluating pricing, payoff, probability, and risk.

Format: Paperback / softback
Length: 331 pages
Publication date: 30 August 2018
Publisher: Springer International Publishing AG

This book is a comprehensive guide designed specifically for experienced portfolio managers and professional options traders who seek to apply advanced options math in their trading strategies. It fills a significant gap in the literature, as there are limited resources available for those who fall between the extremes of beginners and researchers or academics.

Written by Michael C. Thomsett, a renowned expert in the field of options, The Mathematics of Options offers practical insights and actionable tools to help traders navigate the complex world of options pricing, payoff, probability, and risk.

The book begins by introducing the fundamental concepts of options trading and then delves into more advanced topics such as strategic payoffs, return calculations, and hedging options. Thomsett simplifies these complex issues using his approachable and concise writing style, making them accessible to traders of all levels.

One of the key strengths of The Mathematics of Options is its comprehensive coverage of various pricing models, including Black-Scholes, binomial trees, and Monte Carlo simulations. These models are essential tools for analyzing the risk-reward profile of options contracts and making informed trading decisions.

The book also includes numerous real-world examples and case studies to illustrate the practical application of options math. These examples help traders understand how to apply the theoretical concepts to real-world scenarios and apply them to their trading strategies.

In addition, The Mathematics of Options provides valuable insights into risk management and portfolio optimization. It helps traders identify and mitigate risks associated with options trading, as well as optimize their portfolios to achieve specific investment goals.

Overall, this book is a must-read for anyone who wants to enhance their skills and knowledge in options trading. It provides a solid foundation in options math and offers practical insights and tools that can help traders improve their performance and achieve better returns. Whether you are a seasoned portfolio manager or a professional options trader, this book will be a valuable resource for you.

Weight: 546g
Dimension: 155 x 232 x 25 (mm)
ISBN-13: 9783319859606
Edition number: Softcover reprint of the original 1st ed. 2017