Equity Derivatives Explained is a clear, concise and down-to-earth guide to the equity derivatives business, written for traders and other finance professionals. Designed to bridge the gap between theory and practice by taking a risk centric approach, it focuses on the fundamentals of why equity derivatives exist, the various strategies deployed and the aspects that are most important to the relevant participants.
Avoiding the typical long and complex theoretical and mathematical approaches, in favor of a direct, simple and intuitive approach, this introductory text offers an applied, practical and realistic approach to understanding equity derivatives.
This book provides succinct but thorough coverage of the essentials of equity derivatives. It starts with an introduction on stock markets' fundamentals before opening the gate on the world of structured products. Delta-one products and options are covered in detail, providing readers with deep understanding of the use of equity derivatives strategies. Equity Derivatives Explained contains most of the traded payoffs and structures and covers all practical aspects of pricing and hedging. For each product, payoffs are accompanied by graphs, scenario analysis and real-life examples. The treatment of risks is performed in a very intuitive fashion and provides the reader with a great overview of how dealers approach such derivatives. The author also delivers various common sensical reasons on which models to use and when.
By discussing equity derivatives in a practical, non-mathematical and highly intuitive setting, this book enables practitioners to fully understand and correctly structure, price and hedge these products effectively, and stand strong as the only book in its class to make these equity-related concepts truly accessible.
Industry Reviews
'Equity Derivatives Explained is the beginner's guide into the world of financial derivatives. It is impressive in its simplicity and great in its explanatory power.' - Wim Schoutens, Professor Financial Engineering at the Catholic University of Leuven (Belgium) 'Equity Derivatives Explained is a great handbook to discover the equity derivatives business. It covers the whole spectrum of structured business, from client needs to pricing technicalities. Theory is well explained and examples are full of intuitive power.' - Amine Chkili, Equity derivatives Trader, HSBC (London) 'Suitable to audiences of all levels, the book takes a unique approach to first introduce equity derivatives to a novice audience and gradually covers the technical aspects for a more advanced user. As a practitioner, this is a must read and a desk companion.' - Bachir Binebine, Blackrock (Singapore) 'Another strike from Mohamed Bouzoubaa! This no-nonsense book provides a remarkable balance between theory and practice regarding most equity derivatives, due in particular to a very clear exposition and well-chosen examples. This highly entertaining and useful short-format piece is truly a valuable complement to any financial bookshelf.' - Patrice Poncet, Distinguished Professor of Finance, ESSEC Business School (Paris) 'Mohamed Bouzoubaa, highly regarded in the equity derivatives field, has come up again with a great reference handbook covering the practical aspects of equity derivatives from the different market professionals standpoints. The reader will certainly learn and enjoy this excellent content.' - Mohamed Tlemcani, Capital Markets, Qatar Investment Authority (Doha) - 'The book is a blend of theory and practical information. Knowledge of the material provided is essential for everyone involved in the Equity Derivatives business. It is easy enough for beginners to read, but also practical for advanced users.' - Mimoun Nadir, Managing Director, Head Trading, Strategic Equity at Credit Agricole CIB (Paris) 'Equity Derivatives Explained is a must have 'user manual' for those who want to demystify the world of equity derivatives. Clear, concise and enjoyable for beginners and a practitioners.' - Andreas Karaiskos, Head of Asia Pacific, Middle East & Africa - Fitch Learning (Dubai)
