This book presents a good balance of theory and practice. It is important for a sutdent of the derivatives market to understand how arbitrage arguments lead to rational option pricing, why the cost of carry is crucial to futures pricing, and how a swap dealer determaines the fixed rate on an interest rate swap. These are enjoyable topics to teach, and motivated finance students can find them fascinating. At the same time, it is equally important to understand how the end user makes intelligent use of these product as risk management tools. I have included a variety of application examples from the perspective of both the speculator and the hedger.

Chapter 1 Introduction
Chapter 2 Basic Principles Of Stock Options
Chapter 3 Basic Option Strategies: Covered Calls And Protective
Puts
Chapter 4 Option Combinations And Spreads
Chapter 5 Option Pricing
Chapter 6 The Black-Scholes Option Pricing Model
Chapter 7 Option Greeks
Chapter 8 Fundamentals Of The Futures Market
Chapter 9 Stock Index Futures
Chapter 10 Foreign Exchange Futures
,etc.