Dynamic Hedging: Managing Vanilla and Exotic Options (Wiley Finance)

Features

• Cover Type: Hard Cover with 528 pages
• Published by: Wiley January 14, 1997
• Written in: English
• ISBN 10 Number: 0471152803
• ISBN 13 Number: 978-0471152804
• Book Dimensions: 10 x 7.4 x 1.6 inches
• Weighs: 2.4 pounds

Product Description
Destined to become a market classic, Dynamic Hedging is the only practical reference in exotic options hedgingand arbitrage for professional traders and money managers

Watch the professionals. From central banks to brokerages to multinationals, institutional investors are flocking to a new generation of exotic and complex options contracts and derivatives. But the promise of ever greater profits also creates the potential for catastrophic trading losses. Now more than ever, the key to trading derivatives lies in implementing preventive risk management techniques that plan for and avoid these appalling downturns. Unlike other books that offer risk management for corporate treasurers, Dynamic Hedging targets the real-world requirements of professional traders and money managers. Written by a leading options trader and derivatives risk advisor to global banks and exchanges, this book provides a practical, real-world methodology for monitoring and managing all the risks associated with portfolio management.

Nassim Nicholas Taleb is the founder of Empirica Capital LLC, a hedge fund operator, and a fellow at the Courant Institute of Mathematical Sciences of New York University. He has held a variety of senior derivative trading positions in New York and London and worked as an independent floor trader in Chicago. Dr. Taleb was inducted in February 2001 in the Derivatives Strategy Hall of Fame. He received an MBA from the Wharton School and a Ph.D. from University Paris-Dauphine.

Publisher Description
Written by a leading options trader and derivatives risk advisor to global banks and exchanges, this book provides a practical, real-world methodology for monitoring and managing all the risks associated with portfolio management. Fills a big gap in investment literature--the only book to share complex options trading strategies and advanced risk management methods with trading professionals.

Reader Reviews
This is not a book for beginners (and I'm not a beginner). I found parts of it really compelling, particularly the ones that emphasize what can go wrong when you write options making simplistic assumptions about the liquidity of the underlying asset. I buy options a lot more often than I sell them, but I always wonder what the sellers are doing to hedge on their side (and whether they think buyers like me are idiots). Compared to many technical books, this mixes in a lot of traders' lore--usually you find the traders' lore with no math, or the math with no traders' lore.