Classical financial mathematics deals first of all with basic financial instruments like stocks, foreign currencies and bonds. A derivative (derivative security or contingent claim) is a financial instrument whose value depends on the value of others, more basic underlying variables. In this chapter we consider forward contracts, futures contracts and options as well as some combinations.
KeywordsOption Price Call Option Financial Instrument Future Contract Spot Price
Unable to display preview. Download preview PDF.
- Hull, J. C. (2000). Options, Futures and other Derivatives,Prentice Hall.Google Scholar
- Jarrow, R. (1992). Finance Theory, 2 edn, Prentice-Hall, Englewood Cliffs, NJ.Google Scholar
- Cox, J. and Rubinstein, M. (1985). Options Markets,Prentice-Hall, Englewood Cliffs.Google Scholar
- Duffle, D. (1996). Dynamic asset pricing theory, 2 edn, Princeton University Press. Princeton.Google Scholar
- Mai, H. and de Varenne, F. (1998). Options, futures and exotic derivatives, John Wiley & Sons, Chichester.Google Scholar