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See All Buying Options. Unable to add item to List. Sorry, there was a problem. There was an error retrieving your Wish Lists. Have one to sell? Flip to back Flip to front. Option Pricing and Trading Paperback — January 1, See search results for this author. Are you an author?
Learn about Author Central. See all 3 formats and editions Hide other formats and editions Price. Paperback, January 1, —. This new book gives extremely clear explanations of Black-Scholes option pricing theory, and discusses direct applications of the theory to option trading.
The presentation does not go far beyond basic Black-Scholes for three reasons: First, a novice need not go far beyond Black-Scholes to make money in the options markets; Second, all high-level option pricing theory is simply an extension of Black-Scholes; and Third, there already exist many books that look far beyond Black-Scholes without first laying the firm foundation given here.
The trading advice does not go far beyond elementary call and put positions because more complex trades are simply combinations of these. An accompanying spreadsheet allows the user to forecast transactions costs for option positions using simple models. Read more Read less. See all buying options. Option Pricing and Trading. Available from these sellers.
Customers who bought this item also bought. Page 1 of 1 Start over Page 1 of 1. Heard on the Street: Frequently Asked Questions in Quantitative Finance. Heard on The Street: What other items do customers buy after viewing this item?
Pocket Heard on the Street: Timothy Crack January 1, Language: Share your thoughts with other customers. Write a customer review. Rated by customers interested in. Is this feature helpful? Thank you for your feedback. There was a problem filtering reviews right now. Please try again later. By Frederic Van Biene on January 2, Good analysis and review of options pricing. Discussion related to trading was basic but very incomplete.
Good review of what drives the changes in option premium with the passage of time and changing markets.
Author is an academic, not a trader. Was this review helpful to you? This is a good follow-up to Crack's "Heard On the Street" with more practical help for beginners in quantitative finance. It's basically a review of standard options pricing with a lot of Black-Scholes. For me the strength is a lot of conceptual reflection on how the formulas work, what individual terms mean, and how to apply with useful approximations. I was hoping for more case studies of options prices and looking at how stock and options prices interact in the market.
This book really doesn't do that. But if you want a derivation of Black-Scholes and thoughtful discussion of terms and parameters this is excellent. The author is rigorous in his explanations and mathematics like all of his books. A nice text for people wanting to get to the point on option pricing maths, without wasting time getting carried away on more academic models written by mathematicians for mathematicians for publishing a paper.
This text easily gives you the bread and butter on the theory for trading options in practice. By The Brown Family on September 24, I am a professor of finance at the University of Puerto Rico. If you really want to understand option pricing get this book By vilhelm on June 14, I have never done a trade before reading this book. At the beginning, it was very hard to understand the whole option idea. The approach is theoretical but Falcon explains it in a very good manner.
It took me a lot of time to really understand the whole thing but this book is superior. It really shows you how the options work and how one's movement influences another. It does not give you exact information on how option prices act in different unique situation, but it tells you the most important, how they change over time and WHY they act as they do. You only have to clear it out yourself, and you will see it when you watch the formula.
But I still think this book requires understanding of principles of mathematics, at least it helps reading. Too many books I have read after this which have too had over four stars in review does not give as deep and clear understanding of the option price behavior.
They are more practical approach. This book gives you very good base for the oncoming readings too. You may not need to fully understand theory while trading but I think it is essential. It is like, you wouldn't go hunting birds and elks with shotgun because you want to shoot the elk with rifle. You should know how the tools work. If they do not work, at least you can figure it out why they didn't and avoid the same mistake in the future. Tremendously valuable book for its selection and excellent treatment of many rarely addressed aspects of financial derivatives and the care with which intuition for these aspects is developed.
Financial mathematics exists at the intersection of many different fields, yielding many possible perspectives from which to teach and learn about this discipline. Many of these perspectives bog down in the rigor of their respective fields. Such approaches render it difficult to absorb and apply core concepts without spending a great deal of time in first learning topics such as advanced probability theory and stochastic calculus.
Crack's approach seems to be to develop the intuition as a framework for understanding further advanced study, should it be warranted by the reader. At the same time, he includes many aspects of the underlying science to help bridge the gap between the academic world and the world of trading. For example, his derivation of the solution to the Black-Scholes equation and subsequent analysis of the components of the solution leaves the reader fully prepared to quickly and intelligently grasp the impact of changes in assumptions.
This is in contrast to many treatments that seem to stop at the solution, leaving the reader feeling as though the Black-Scholes solution is simply a black-box with no intuitive connection to the real world. By Everett Asher on September 6, This is an excellent introduction to option pricing, with a great deal of both analytical and practical information.
While there is a lot of mathematics obviously , the logical progression of topics and easy to read text make it quite accessible. Intuition and reasoning are used in conjunction with the mathematics to help make somewhat abstract ideas more concrete.More...