Options, futures, and other derivative securities.

This book k is appropriate for grade and advanced undergrabe elective e heinen and economics. It is sisestable for practitioners who want its sequire a working knowledge of how derivative securities can be analysed

One of the key decisions that must be made by an author who is writing in the area of derivative securities concerns the use of mathematics. If the level of mathematical sphistication is too high, the material is likely to be inaccessible to many students and practitioners. If it is too low, some important issues will inevitably be treated in a rather superficial way. In this book, great care has been aken in the use of mathematics. Nonessential mathematical material has been either eliminated or included in end-of-chapter appendices. Concepts that are likely to be new to many readers have been explained carefully and many numerical examples have been included

The feature of this book that distinguishes it from others in the same area is that it provides a unifying approach to the valuation of all derivative securities-not just futures and options. This book assumes that the reader has taken an introduc tary course in finance and an introductory course in probability and statistics. No prior knowledge of options, futures contracts, swaps, and so on, is assumed.