Options

This revised edition not only provides the same comprehensive introduction as the first edition, but also includes: expanded treatment of option strategies; complete treatment of option sensitivities (DELTA), and thorough treatment of European and American options in two separate chapters; and treatment of options on futures, foreign currency option and options on stock indexes. The text comes with OPTION! software. Major improvements to the software include: the ability to write graphs to the hard drive for printing; European and US binominal model pricing with dividends (proportional payouts, continuous payouts, and specific dollar payouts); the Barone-Adesi and Whaley analytic approximation for American options (with graphs); exact American option pricing (with graphs); complete analysis of option sensitivities (with graphs).