Options on Foreign Exchange (Wiley Finance Series)
July 27, 2010 by TheRainMaker
Filed under Stocks & Options Trading Supplements
Options on Foreign Exchange (Wiley Finance Series)
This is a comprehensive guide to the world’s largest financial market. Foreign exchange is the world’s largest financial market and continues to grow at a rapid pace. As economies intertwine and currencies fluctuate there is hardly a corporate entity that doesn’t need to use options on foreign exchange to hedge risk or increase returns. Moreover, currency options, both vanilla and exotic, are part of standard toolkit of professional portfolio managers and hedge funds. Written by a practitioner w
Rating: 
(out of 4 reviews)
List Price: $ 95.00
Price: $ 59.85
Review by for Options on Foreign Exchange (Wiley Finance Series)
Rating:
This book is a nice introduction to the subject. A trader would benefit from reading the text more than a financial engineer would. It may be a good idea to read the author’s “Currency Derivatives,” as well. People who have read any text at the level of Hull or higher are advised to move on to “Currency Derivatives” directly.
Review by Bert Smits for Options on Foreign Exchange (Wiley Finance Series)
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Mr De Rosa has written a well structured
introduction into the forex option market.
The clear examples and the pleasant writing
style make it an easy read (two nights, tops!).
Starting by showing the reader an EBS
dealing screen, he explains the price setting using the Black-Scholes model.
A bit more explanation might have been
in order on how the interbank market
really works in practice (volatility runs for ATMS Straddles, market making, etc…).
The section on exchange traded options and
futures is interesting for readers unaware
of the important differences with the OTC market.
The formulas for the Greeks contain almost
no typo’s thus making the book useful as
a reference for a programmer.
The section on barrier options is a bit
disappointing. The relationship between
higher order derivatives and the volatility
smile might not have been out of place
(I am referring to the celebrated “three option
method” to quickly price exotics without
having to use MC-simulation).
Also, when introducing alternatives to the
BS-model, the formulae appear as by Deus
ex Machina. Nothing is said about calibration
difficulties. And when introducing alternative
models, why not going into long term fx
options ?
All in all, I would recommend the book to
any beginning forex option trader or salesperson,
but as those people generally do not earn the
largest of salaries, it is even better if they
borrow it from their institution’s library.
Review by Stephen Smith for Options on Foreign Exchange (Wiley Finance Series)
Rating:
the product was fine it was the shipping that was utterly horrible. these two books nboth came over 1 week late and cost me time in studying for a class. very dissappointed in delivery
Review by for Options on Foreign Exchange (Wiley Finance Series)
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This second edition has been greatly expanded with materials on the mechanics of the foreign exchange and options markets. The sections on the international monetary system have been updated, especially with respect to the European monetary system. New sections have been added on exotic currency options, specifically on barriers, average rate, basket and quantos options. There are two new chapters, one on currency option applications and another on currency overlay management.