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The Mathematics of Options

Quantifying Derivative Price, Payoff, Probability, and Risk

  • Book
  • © 2017

Overview

  • Fills the empty middle ground between introductory guides and technical manuals

  • Presents practical and actionable mathematical tools, including Excel formulas

  • Uses advancements in technology to make technical trading approachable for more traders

  • Includes supplementary material: sn.pub/extras

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Table of contents (11 chapters)

Keywords

About this book

This book is written for the experienced portfolio manager and professional options traders. It is a practical guide offering how to apply options math in a trading world that demands mathematical measurement. 


Every options trader deals with an array of calculations: beginners learn to identify risks and opportunities using a short list of strategies, while researchers and academics turn to advanced technical manuals. However, almost no books exist for the experienced portfolio managers and professional options traders who fall between these extremes.


Michael C. Thomsett addresses this glaring gap with The Mathematics of Options, a practical guide with actionable tools for the practical application of options math in a world that demands quantification. It serves as a valuable reference for advanced methods of evaluating issues of pricing, payoff, probability, and risk. In his characteristic approachable style, Thomsett simplifies complex hot button issues—such as strategic payoffs, return calculations, and hedging options—that may be mentioned in introductory texts but are often underserved. The result is a comprehensive book that helps traders understand the mathematic concepts of options trading so that they can improve their skills and outcomes.

Authors and Affiliations

  • Spring Hill, USA

    Michael C. Thomsett

About the author

Michael C. Thomsett has been writing for a living since 1978 and has published more than 90 books. These include 12 options books. His best-selling Getting Started in Options has been published in nine editions and sold more than 300,000 copies. He also has developed and presented options webinars, and coaches on a live trading room every day and is a frequent speaker at trade shows and investment conventions. The author blogs on TheStreet.com, Seeking Alpha, Options Money Maker, Stockcharts.com, and social media.

Bibliographic Information

  • Book Title: The Mathematics of Options

  • Book Subtitle: Quantifying Derivative Price, Payoff, Probability, and Risk

  • Authors: Michael C. Thomsett

  • DOI: https://doi.org/10.1007/978-3-319-56635-1

  • Publisher: Palgrave Macmillan Cham

  • eBook Packages: Economics and Finance, Economics and Finance (R0)

  • Copyright Information: The Editor(s) (if applicable) and the Author(s) 2017

  • Hardcover ISBN: 978-3-319-56634-4Published: 24 October 2017

  • Softcover ISBN: 978-3-319-85960-6Published: 30 August 2018

  • eBook ISBN: 978-3-319-56635-1Published: 30 August 2017

  • Edition Number: 1

  • Number of Pages: XXII, 331

  • Number of Illustrations: 59 b/w illustrations

  • Topics: Risk Management, Financial Engineering

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