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Long-established as a definitive resource by Wall Street professionals, The Complete Guide to Option Pricing Formulas has been revised and updated to reflect the realities of today's options markets. The Second Edition contains a complete listing of virtually every pricing formula_ all presented in an easy-to-use dictionary format, with expert author commentary and ready-to-use programming code.

The Second Edition of this classic guide now includes more than 60 new option models and formulas…extensive tables providing an overview of all formulas…new examples and applications…and an updated CD containing all pricing formulas, with VBA code and ready-to-use Excel spreadsheets.

The volume also features several new chapters covering such things as: option sensitivities, discrete dividend, commodity options, and two chapters on numerical methods covering trees, finite difference and Monte Carlo Simulation.

The new edition of The Complete Guide to Option Pricing Formulas offers quick access to:

• Options Pricing Overview
• Black-Scholes-Merton
• Black-Scholes-Merton Greeks
• Analytical Formulas for American Options
• Exotic Options Single Asset
• Exotic Options on Two Assets
• Black-Scholes-Merton Adjustments and Alternatives
• Trees and Finite Difference Methods
• Monte Carlo Simulation
• Options on Stocks that Pay Discrete Dividends
• Commodity and Energy Options
• Interest Rate Derivatives
• Volatility and Correlation
• Distributions
• Some Useful Formulas: Interpolation, Interest Rates, and Risk-Reward Measures

This all-in-one options pricing guide contains a numerical example or a table with values for each option pricing formula. The book also includes a helpful glossary of notations, as well as an extensive bibliography of related books and articles.

Average Customer Rating:

Very nice book

Customer Rating:

This is a great reference book to have, spanning a wide spectrum of topics. It begins covering anaylitical solutions for a variety of common equity/FX/commodities options (the 'lognormal' family) to then move into numerical methods (namely trees, including implied, and montecarlo). It also covers some fixed income products as well as useful miscellanea such as various formulas for interpolation, volatility estimation and derivations of BlackScholes greeks if one's chainrule is rusty. What I particularly like are the many examples, which often help crystallize the formulas, as well as some nice simple VBA code implementations (beware of some small typos though, i have the 1998 edition and in page 141 on the Montecarlo code, "nStep" is defined in the declaration but nStepS (extra "s") is used on the code). Again, great and useful reference to have around.

The Ultimate Book on Option Prices

Customer Rating:

In this book the author, Haug, shares with us his lifetime collection of option formulae. The book can be used as a reference book or read from cover to cover. I read the book from cover to cover. The commentary is excellent. I have to confess that I didn't understand all the information in the book because I'm only a novice and I think some parts of the book were really intended for " financial engineers ". Even though I was a little bit out of my depth I was still able to understand the authors perspective and sequence of thought. Anyway on page 497 the author states: "This book contains a large collection of option pricing formulas. To ease the use of the formulas, the book includes a CD with ready to use Excel spreadsheets." and "To start pricing options, only a minimum knowledge of using a spreadsheet is required. All that is required is typing in the input variables for the relevant formula. The computer will do the rest."

Every desk should have a copy: by a practitioner for practitioners

Customer Rating:

If you want to cook, buy the paperback edition of "The Joy of Cooking" (JoC) and low and behold, your cooking will improve. JoC is a recipe book, but as you work through it you learn principals for cooking that are widely applicable. If you want to be in quantfin you need to buy The Complete Book of Option Pricing Formulas: it is the "Joy of Cooking" for options. As you work through the collection, the formulas, and look at the code (on a wonderful CDROM) low and behold you'll get better at all principals, concepts, and conceptions on how code works for option pricing formulas. A word about errors in the previous edition: even critical editions of long-dead authors have errors in them, just look at the "errata" sheets from The Library of America critical editions. For the first edition Espen Haug put his errata sheet immediately up on his website, and it also is widely available with a simple GOOGLE search (lots of people have copies on the various quant fin discussion boards). 10 seconds extra work versus whining away about how something isn't perfect? Oh, grow up. You rationally will be spending that much extra time on learning this code and digesting material in this book anyway. Excellent in every way.

Excellent Book	Customer Rating:
A very exhaustive list of the formula for the most used option. A must for all Option trader. The codes are very helpfull also.

A fundamental source in a pricing area	Customer Rating:
It's not expensive and almost complete. Don't show the Greeks' formulas, which is very important for practitioners.