Derivatives: Markets, Valuation, and Risk Management

Compared with many of the compulsory texts I've been assigned in the past, this one is a delight. The author clearly has a very good understanding of the subject matter and does an excellent job of working the reader first through the background theory or mathematical proof of a given topic, concluding with the final formula or idea, and then using market or experience-based observations to reiterate the point. What lets the book down, however, is the numerous typos - including in one or two of the equations. I'm sure the second edition will correct many of these, and they're not a big impediment by any stretch; the clarity of thought and breadth of coverage of the subject more than makes up for these small oversights. Highly recommended.

This is my standard derivatives pricing reference book. I've used it at work, preparing for my CFA exams, and now in retirement, I use it for my personal trading strategies. Just the included Excel Add-in with all the options pricing formulas is worth the $100+ price tag.

This is what I was looking for, a lot of academic background study of real market instruments to inspire new pathways of discovery in my trading.

Clearly written book. The author knows his stuff. He is also touching subjects which may even be considered more advanced without loosing the intuition. The excel files found in the CD increase the understanding of the student.

I have read a couple of books on derivatives starting from novice level. when i compare this book with those written by some of rhe other great names i feel it is much clearer andeasy to understand. It answers the questions that come to our mind. the optval library is awesome. i feel it is a must read. Coming from the man who created the Market Volatility Index (i.e., the "VIX") for the Chicago Board Options Exchange and the NASDAQ Market Volatility Index (i.e., the "VXN")it touches upon aspects of derivatives markets which serve to give the practical insight about the market's functionality.