Preface to the first edition
Chapter 1 Risk Management and Financial Derivatives
1. 1 risk and risk management
1.2 Forward contracts and futures
1.3 option
1.4 option pricing
1.5 trader type
Chapter II The Principle of No Arbitrage
2. 1 Financial market and no-arbitrage principle
2.2 European option pricing estimation and parity formula
2.3 American option pricing estimation and early implementation
2.4 Dependence of option pricing on exercise price
utilize
The third chapter is the discrete model of option pricing & binary tree method.
3. Example of1
3.2 Single-cycle single-state model
3.3 Binary Tree Method of European Option Pricing (Ⅰ)-No Dividend Payment
3.4 Binary Tree Method of European Option Pricing (Ⅱ)-Paying Dividends
3.5 Binary Tree Method for American Option Pricing
3.6 Symmetrical relationship between American call option and put option pricing
utilize
Chapter 4 Brownian motion and Ito formula
4. 1 Random Walk and Brownian Motion
4.2 continuous model of primary asset price evolution
4.3 Quadratic variational theorem
4.4 ItO integral
4.5 Ito Formula
utilize
Chapter 5 European option pricing-Black-Scholes formula.
5. 1 historical review
5.2 Black-Scholes Equation
5.3 Black-Scholes Formula
5.4 Extension of Black-Scholes Model (Ⅰ)-Paying Dividends
5.5 Extension of Black-Scholes Model (Ⅱ)-binary options and Compound Options
5.6 Numerical Method (Ⅰ)-Difference Method
5.7 Numerical Method (Ⅱ)-Binary Tree Method and Difference Method
5.8 Nature of European Option Price
5.9 Risk management
utilize
Chapter VI American option pricing and the best implementation strategy.
6. 1 perpetual American option
6.2 American option model
6.3 Decomposition of American Options
6.4 Nature of American Option Price
6.5 Best implementation boundary
6.6 Numerical Method (Ⅰ)-Difference Method
6.7 Numerical Method (Ⅱ)-Slice Method
6.8 Other forms of American options
utilize
Chapter VII Multi-asset Options
7. 1 multi-risk asset stochastic model
7.2 Black-Scholes Equation
Chapter 8 Path Dependent Options (Ⅰ)-Weak Path Dependent Options
Chapter 9 Path Dependent Options (Ⅱ)-Strong Path Dependent Options
Chapter X Implied Volatility
refer to
Noun index
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