Basic Black-Scholes: Option Pricing and Trading

This new book gives extremely clear explanations of Black-Scholes option pricing theory, and discusses direct applications of the theory to option trading. The presentation does not go far beyond basic Black-Scholes for three reasons: First, a novice need not go far beyondBlack-Scholes to make money in the options markets; Second, all high-level optionpricing theory is simply an extension of Black-Scholes; and Third, there already exist manybooks that look far beyond Black-Scholes without first laying the firm foundationgiven here. The trading advice does not go far beyond elementary call and put positions because more complex trades are simply combinations of these. The appendix includes Black-Scholes option pricing code for the HP17B, HP19B, and HP12C.An accompanying spreadsheet allows the user to forecast transactions costs for option positions using simple models.Timothy Falcon Crack is the author of 'Basic Black-Scholes: Option Pricing and Trading', published 2004 under ISBN 9780970055224 and ISBN 0970055226.