The Investor's Guidebook to Derivatives: Demystifying Derivatives and Their Applications

Bought this book as I recently began working more with Equity derivatives at work. Veale's book is great for people who already work in the finance world and who are looking to gain more knowledge on derivatives including their valuation and trading. The book contains problem sets as well as examples including binomial, trinomial, and black-scholes models. After reading his Equities book which I thought was excellent I purchased this. The immediate difference you'll notice is the terms used in this book assume that the reader has some knowledge of the financial markets as opposed to the other. The book covers fixed income, FX, commodity, as well as both vanilla and exotic equity options.

The content of the book is invaluable. It presents a wide variety of topics in a manner accessible to someone with very limited background knowledge in finance.However, it is extremely disappointing to see typos in almost every chapter and even glaring mathematical errors in the calculation of put option losses (or “loses” as you will read from time to time).The publisher seems to have replaced the copy editor with spell check and should be embarrassed to sell this book.

Knowledgeable book, must read