Futures, Options and Swaps

This work brings together in one text a comprehensive treatment of the three most important types of financial derivatives - futures, options and swaps - which are linked by a common pricing framework, the proposition that rational prices preclude arbitrage profits. This guiding principle is introduced in the first chapter and pursued throughout the text. Additionally, the text highlights the use of futures, options and swaps in risk management. The book features ample examples of speculative strategies that can be implemented with these instruments. The treatment in this text focus on financial derivatives, but it does not neglect traditional commodity futures. Each copy of the text is accompanied by OPTION!, an IBM-PC-compatible software program, which computes the option values discussed in the book, and can be used to solve the more than 50 exercises designed to enhance the understanding of option pricing principles and applications. An instructor's manual and futures data diskette with settlement prices on a wide variety of futures contacts is available to adopters.