Financial Derivatives

This wikibook is devoted to detailing the methods for trading and evaluating financial derivatives, such as futures and options. This wikibook assumes a strong grasp of differential equations and some understanding of statistics. The ideas introduced will not make you into a good trader. They will merely provide you with some of the tools that derivatives traders use.

Detailed contents list

 * Chapter 1 ~ Introduction


 * Chapter 2 ~ Basic Derivatives Contracts
 * Forwards
 * Futures
 * Swaps
 * Options
 * Advanced Structures


 * Chapter 3 ~ Pricing of Derivatives


 * Chapter 4 ~ Derivatives in Risk Management


 * Chapter 5 ~ Real Options


 * References ~ References


 * Appendix I ~ Notions of Probability Theory


 * Appendix II ~ Notions of Stochastic Calculus

= References = Fischer Black, "The pricing of commodity contracts", The Journal of Financial Economics, 3 (1976), pp. 167–179.

Stephen A. Ross, "Neoclassical Finance (Princeton Lectures in Finance)", Princeton University Press, 2004.