More about derivatives
Sup guys?
I've been trying to educate myself on derivatives lately and I am wondering if anyone could point me towards some good resources. Specifically, I am looking to learn more about swaps, options, futures, and forwards.
Thanks
the bible is Hull's book:
http://www.amazon.com/Options-Futures-Derivatives-DerivaGem-Package/dp/…
you can get earlier versions for much cheaper which are nearly as good
The CFA curriculum has info too
Is there anything free that is legit? I am willing to spend $ but kinda broke right now. I just spent $600 on textbooks.
You can find Hull on a whole bunch of torrents.
Hull. The stuff is bloody complicated, but if you've got a background in Finance then it should be no problem.
What a lot of traders have told me is that Hull is informative but it doesn't look at derivs from a trader's perspective (or just their perspective maybe?).
They recommended Natenberg.
If you want to learn pricing, go with Shreve (stochastic calculus for finance vols I and II). Hull has more breadth but far less depth.
lol... if you just start to learn derivatives and have no math background, then don't start with Shreve. But on the hand, you may be a ninja. If that's the case, Øksendal and Karatzes & Shreve are also great to learn pricing.
Natenberg's book on options is the best introductory guide on the subject, imo.
Hull or Wilmott would be too complicated for someone who does not have a strong math background.
I just downloaded Nassim Taleb's "Dynamic Hedging" and will try to read that.
natenberg is too complicated for a beginner. Options, Plain & Simple is the best introductory text ive read. also the classes on 888options.com are good
http://www.youtube.com/user/marketplacevideos
This guy gives great overviews of everything. I learned from his videos when I was in college to prepare for interviews.
A sort of easy reading book would be Derivative Markets by McDonald. Goes through the basics and then some.
A rule of thumb to distinguish European and American options: "Think of a mother and daughter you would like to f*ck. Buy an American put option on the mother and an European call on the daughter, with maturity on her 18 birthday. Then you strangle her."
That is the only thing my professor taught me back in UG about options that stuck with me.
I have NEVER laughed this hard.
^Do you mean straddle?
strangle, both otm.
Manbearpig: Damn... you're right.
Just wanted to say thanks... Hull's book is actually not too bad. Very informative.
Option Trading: Pricing and Volatility Strategies and Techniques by Euan Sinclair for options.
I learned the greeks from Hull and Natenburg then I built an excel model that I still look at today to show they change as the underlying, time, rates and strikes change.
PM me, I've got a great PDF textbook on options.
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