1. Introduction
2. Mechanics of Futures Markets
3. Hedging Strategies Using Futures
4. Interest Rates
5. Determination of Forward and Futures Prices
6. Interest Rate Futures
7. Swaps
8. Mechanics of Options Markets
9. Properties of Stock Options
10. Trading Strategies Involving options
11. Binomial Trees
12. Wiener Processes and Ito’s Lemma
13. The Black-Scholes-Merton Model
14. Options on Stock Indices, Currencies, and Futures
15. Greek Letters
16. Volatility Smiles
17. Basic Numerical Procedures
18. Value at Risk
19. Estimating Voaltilities and Correlations for Risk Management
20. Credit Risk
21. Credit Derivatives
22. Exotic Options
23. Insurance, Weather, and Energy Derivatives
24. More of Models and Numerical Procedures
25. Martingales and Measures
26. Interest Rate Derivatives: The Standard Market Models
27. Convexity, Timing, and Quanto Adjustments
28. Interest Rate Derivatives: Models of the Short Rate
29. Interest Rate Derivatives: HJM and LMM
30. Swaps Revisited
31. Real Options
32. Derivatives Mishaps and What We Can Learn from Them

Glossary of Terms

DerivaGem Software

Major Exchanges Trading Futures and Options

Table for N(x) when x≤ 0

Table for N(x) when x≥0

Author index

Subject index