Contents
Introduction vii
1 Introduction to derivatives 1
2 Introduction to forwards and options 7
3 Insurance, collars, and other strategies 29
4 Introduction to risk management 79
5 Financial forwards and futures 129
8 Swaps 141

Contents
Introduction vii
9 Introduction to derivatives 1
10 Binomial option pricing I 23
11 Binomial option pricing II 91
12 Black-Scholes formula 107
13 Market making and delta hedging 125
14 Exotic options: I 139
20 Brownian motion and Ito’s lemma 147
24 Interest rate models 153