alt Hacker NewsThank you.
No matter how much I try to understand the financial system, there seems no end to the nomenclature.
Do you or others know of any good references that help navigate this?
Replies
lordnacho • yesterday at 8:57 PM
Options, Futures, and Other Derivatives by Hull, that's the classic.
Not sure how exotic he gets but likely the page that sells this book will have other options books.
I think there's one by Espen Hauge about exotics.
Relevant book by Nassim Taleb (before his big break) is Dynamic Hedging, which tells you what to do with your option risk once you have it.
Really depends how deep you want to go.
For a structured products introduction you may take a look at this one: https://sspa.ch/en/book/
It's a very simple book, very high level, but explains the most popular structured products in a very simple manner. If you can read a payoff diagram, then this is the simplest intro.
Looking at their website though, they seem to have some nice online material there also. For example this explains the 5 most popular products, and perhaps that's good enough for an introduction (really these 5 products cover 90% of the market anyway, though there's no limit to how exotic some bespoke structures can get): https://sspa.ch/en/lab/?underlying=CH0012221716&final_fixing...
In case you're interested in getting to get to learn about them on a deeper level I would recommend https://www.amazon.com/Exotic-Options-Hybrids-Structuring-Pr.... This book explains not only the products, but also the pricing dynamics and hedging too.
And just a small gem I found recently about volatility trading:https://www.ebay.co.uk/itm/306680584072?chn=ps&_ul=GB&_trkpa...
Despite its appalling Amazon reviews I consider this book to be a real gem when it comes to the introduction to vol trading (basically dynamic hedging of equity derivatives)