Just excellent : if you are looking for a book on exotic from a trader perspective you got it ! And it's not just about Exotic.: it describes very well the logic behind models and how any trader has to use shortcuts to price and identify risks at first sight. My first book on iPad !
One can see that the authors of this book have clearly an equity background since the majority of the structures and descriptions of the risks are based on equities and I think the book does a great job in doing this. The content is well structured and it gives you a good overview of structured products and the risks involved. When it comes to other asset classes like interest rates, fx or commodities, the book scratches only the surface and is sometimes inaccurate or outright wrong. The book also misses the fact that discounting in the rates business has been changed to OIS discounting after the crisis. But this is forgivable since the equity sections are of high quality. This is clearly not a quantitative book and it just gives you the basic idea of various models which is fine but he book would be a lot more useful if it included samples of the described pricing methodologies. An example how to actually calibrate a copula with market data instead of just presenting the mathematical theory would be great. The book does provide examples when it comes to simple portfolio theory but these are the kind of examples which can be found easily on the internet for free. The Appendix gives a very good overview of the common market models as well as some shortcuts to do approximations in you head. I haven’t read a better summary anywhere else so far. I can recommend this book to everyone, who is interested in structured equity products.
An excellent book on mostly equity exotic products: (a)clear exposition (b)lots of lifelike examples (c)covers a wide range of products (d) self-containing chapters so you can go directly to the ones you want to read rather than read the whole books.
Amazing!!! this book is one of the best books for finance ever written.The referred contents are described analytically,and an oportunity to accompany the financial theory with practical issues is given.This book helped me a lot with my dissertation.
In one word: Excellent! I bought this book during the first week of joining an institutional structuring desk and it has been an excellent guide to all aspects of the job. It starts from the basics of derivatives and financial products in general, just in case you had forgotten them or wanted to revise, and then progresses towards more and more complex products. The best thing about the text is that you take from it exactly what is needed on the job from a practical AND a theoretical point of view. It not only shows the reader where the risks of each product are and how to incorporate them in the pricing, but as you read on you learn how to spot these risks yourself in more complicated products or variations of the ones described in the book. Another great thing is that it is very easy to read. The maths in the book are the minimum necessary to describe the topic. All is explained using plain language which is perhaps the greatest achievement of the authors. It is obvious that they understand the topic perfectly. To sum up, this is excellent for anyone interested or working in exotic derivatives, whether a beginner, enthusiast, or even a veteran. It could be an excellent first encounter with exotics but also a great reference later on in ones career. I am certainly keeping it in the front shelf in my library.
Einstein once said that if a man cannot explain a complex notion in a simple manner, then he likely has not understood the notion. As if taking this axiom to heart, Osseiran's book makes clarity out of profundity. This is a book that should, from its title and subject matter, terrify neophytes to exotic options trading. On the contrary, it kept this neophyte rapt. An immensely rewarding book, I recommend it unreservedly. This book takes one through the technicalities of how traded exotic products work in practice and detail without the fearsome maths which tends to frighten many people away from such books. The book is interesting to read and will be of great benefit both to traders, risk managers and controllers. Osseiran takes a complex notion and explains the underlying fundamentals in a way that anyone can understand. I found this book to be a perfect primer for junior structurers and sales people. This book is a MUST read for anyone interested in the world of exotics and I think it deserves the 5* rating!
This book is an invaluable desk reference for structurers, product managers, and anyone involved in derivative products. The numerous real trade examples, payoffs, scenario analyses and term sheets give it a much greater practical use than the usual derivative books.