Option Pricing: Black–Scholes Made Easy + Website

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.

Spis treści:
The True Logic of this World is in the Calculus of Probabilities.
Getting Up and Running.
Volatility.
Every Financial Forecast is a Probability Distribution.
Black–Scholes Asumptions (Part I).
Working with Geometric or Continuously Compounded Rates of Return.
Expected Return.
How Dividends Affect Price Paths and Forecasts.
Option Outcomes, Probability Distributions, and Expected Returns.
Option Pricing.
Black–Scholes Assumptions (Part II).
Value of Early Exercise of American Options.
Black′s Approximation for Valuing American Options.
Sensitivity of Option Values to Changes in Volatility, Spot Price of Underlying, Time to Expiration, and Risk–Free Rates.
Using Options to Leverage Your Expected Return.
Black–Scholes Assumptions (Part III).
Using the Animations to Assess Option Opportunities.
What We Didn′t Tell You.
Using the Animation to Sell Options to Others.
Risk Management and Value at Risk.
An Investment Strategy.
Navigating Through the Animations.Index.

Nota biograficzna:
JERRY MARLOW is a freelance financial writer and marketing consultant. For investment firms he creates marketing and educational presentations that bridge the gap between how sophisticated finan cial managers and the firms′ clients think about investing. Marlow lives in New York City.

Okładka tylna:
"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 dramat ically 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.