black scholes option pricing and option trading

Basic Black-Scholes:
Option Pricing and Trading
© 2009, 2004 by Timothy Falcon Crack PhD(MIT)

"...a clear explanation of basic option pricing theory, plus option trading advice for the novice"

Book Contents Author's Backgound How to Buy the Book Download Spreadsheet Tools Contacts

Book Contents....

The revised second edition (ISBN 0-97005552-4-2) is in stock at online stores.
This book gives extremely clear explanations of Black-Scholes option pricing theory, and discusses direct applications of the theory to option trading. The explanations do not go far beyond basic Black-Scholes. There are three reasons for this: First, a novice need go far beyond Black-Scholes to make money in the options markets; Second, all high-level option pricing theory is simply an extension of Black-Scholes theory; and Third, there already exist many books that look far beyond Black-Scholes without first laying the firm foundation given here.
This book may be used as a text or text supplement at the advanced undergrad or masters level. It can also be used as a supplement at the PhD level by students who need to better understand fundamental option pricing theory and options markets. The book can also be used by anyone who has a basic understanding of options and wants to trade them for the first time.
The trading advice is meant for the novice, but may be useful to more experienced traders. The trading advice does not go far beyond elementary call and put positions because more complex trades are simply combinations of these.
The book is a soft cover paperback, and includes a password for a simple EXCEL spreadsheet that allows the user (with a view on a stock) to forecast option prices allowing for bid-ask spreads, commissions, and the volatility smile.
View the cover
more details...

Author's Background....

Timothy Falcon Crack has a PhD from MIT. Dr. Crack has won six teaching awards and been nominated for five others. He has articles published or forthcoming in the top academic, practitioner, and teaching journals in finance (Journal of Finance, Journal of Business, Financial Analysts Journal, and both Journal of Financial Education and Journal of Applied Finance). He is the author of the popular book "Heard on the Street: Quantitative Questions from Wall Street Job Interviews."
Dr. Crack has degrees in Mathematics/Statistics, Finance, and Financial Economics and a diploma in Accounting/Finance. He also holds the Investment Management Certificate from the UK Society of Investment Professionals. He taught at the university level from 1985 to 2000, including four years as a front line teaching assistant for MBA students at MIT, and four and one-half years teaching undergraduate, MBA and PhD courses at Indiana University's Kelley School of Business. Dr. Crack has worked as an independent consultant to the New York Stock Exchange, and recently worked as head of quantitative active equity research in the London office of the world's largest institutional asset manager. He is now a professor of Finance.
more details...

How to Buy the Book....

Booksellers who sell my book (last updated May 12, 2009).

Dealer IN/OUT of Stock Ships in ... Price

Amazon.com IN STOCK 5 daysBest Service in US $31.50

Global Investor (1st Edition only) IN STOCK 10 daysBest Service in UK GBP25.5 (approx USD50)

Books A Million IN STOCK 5 Days $45

Amazon.co.uk Available 10 days British Pounds 30 (approx USD45)

If you are a book retailer and you need the book for a customer, please order directly from INGRAM in the US or BERTRAMS in the UK (ISBN 0-9700552-4-2). If INGRAM shows no inventory, your back order triggers their print-on-demand subdivision to print a copy within a few days.

Download Spreadsheet Tools....

LEFT click and choose "Save." Choose "enable macros." The password is in Section 10.3 of the book.

EXCEL Spreadsheet Trading Tool (140.8KB), or EXCEL5/95 version (92.7KB).
EXCEL Spreadsheet Greeks Tool (103.9KB)

Contacts....

Ask the author a question timcrack@alum.mit.edu.NOSPAM (on average one week before reply; remove ".NOSPAM" before mailing).
Errata (known errors in Basic Black-Scholes).
If this book is not what you want, please email the URL to a friend.
Flyers advertising my books:
"Basic Black-Scholes" Flyer (pdf), and "Heard on The Street" Flyer (pdf).

Last Updated: May 12, 2009

Booksellers who sell my book (last updated May 12, 2009).
Dealer	IN/OUT of Stock	Ships in ...	Price
Amazon.com	IN STOCK	5 daysBest Service in US	$31.50
Global Investor (1st Edition only)	IN STOCK	10 daysBest Service in UK	GBP25.5 (approx USD50)
Books A Million	IN STOCK	5 Days	$45
Amazon.co.uk	Available	10 days	British Pounds 30 (approx USD45)