Product Description

Although the pricing and hedging of derivatives contracts has been the subject of a large number of books, hardly any books exist on the actual design of derivatives contracts. Structured Equity Derivatives fills this gap in a remarkable way. The book introduces an approach to the structuring and practical application of derivatives that allows the reader to create his own derivatives solutions to an endless variety of problems. The approach is extremely natural – the only limit is the reader′s own creativity.

Since it clearly explains the reasons why derivatives exist and why there is such a large variety, this is the book that should be read before picking up any other book on the pricing and hedging of derivatives. As the book concentrates on product design instead of pricing, there are no complex pricing formulas or numerical procedures. The emphasis is on intuition and common sense rather than complex formal results, which makes the book accessible to people from many different backgrounds.

Product Details

• Amazon Sales Rank: #125165 in Books
• Published on: 2001-07-11
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 392 pages

Risk, 1 March 2002
"...there is no question that many industry participants will learn from and enjoy reading his book."

Review
"...there is no question that many industry participants will learn from and enjoy reading his book." (Risk, March 2002)

From the Inside Flap
Although the pricing and hedging of derivatives contracts has been the subject of a large number of books, hardly any books exist on the actual design of derivatives contracts. Structured Equity Derivatives fills this gap in a remarkable way. The book introduces an approach to the structuring and practical application of derivatives that allows readers to create their own derivatives solutions to an endless variety of problems. The approach is extremely natural –– the only limit is the reader′s own creativity.

Since it clearly explains the reasons why derivatives exist and why there is such a large variety, this is the book that should be read before picking up any other book on the pricing and hedging of derivatives. As the book concentrates on product design instead of pricing, there are no complex pricing formulas or numerical procedures. The emphasis is on intuition and common sense rather than complex formal results, which makes the book accessible to people from many different backgrounds.

Customer Reviews

GREAT BOOK!
This book has clearly shown me how all the theory I learnt from books such as Hull, Natenberg and Taleb gets applied in practice.
Prof. Kat ingeniously makes the reader understand many option strategies such as risk-reversals, call-spreads, rainbow options, alternative options etc... without throwing them at the reader. He makes the reader figure them out by himself; and this guarantees they will never be forgotten.
Prof. Kat's book also includes an excellent overview of how to structure and market derivative products to the retail investor.
All in all, I strongly recommend this book... It is EXCELLENT!

A general technique for designing structured products
This book describes an approach to structuring products that is accessible to a much wider audience than many other, more technical books in this area. It is a very useful introduction to the whole subject of equity derivatives. Harry Kat's inimitable writing style makes this book very easy and enjoyable reading.

qualitative not quantitative
I bought this book thinking it would offer some interesting quantitative details towards equity derivatives - sadly most of the book is devoted to the basics and introductory material.

If you want a proper quantitative book on equity derivatives get the one by Brockhaus et al, Modelling and Hedging Equity Derivatives.