Derivative Instrument

<body onLoad="MM_checkPlugin('Shockwave Flash','','http://www.riskglossary.com/default_nofl.htm',false);return document.MM_returnValue" stylesrc="../_private/template.htm" bgcolor="#FFFFFF" link="#669933" vlink="#000000" alink="#000000"> <div align="left"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table1"> <tr> <td width="740"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" height="37" id="table2"> <tr> <td height="35" width="100%"> <table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" cellpadding="0" id="table3"> <tr> <td width="100%" align="left" valign="top"> <p class="header_gold">Derivative Instrument</td> <td width="45" align="right" valign="bottom"> <map name="FPMap6"> <area href="http://www.contingencyanalysis.com" shape="rect" coords="1, 0, 44, 11" target="_top"> </map> <img border="0" src="../images/home.gif" usemap="#FPMap6" width="45" height="12"></td> </tr> </table> </td> </tr> <tr> <td width="100%" bgcolor="#CC9966" height="2"> <img border="0" src="../images/blank_2x2.gif" width="2" height="2"></td> </tr> <tr> <td width="0%" valign="top" bgcolor="#FFFFCC"> <table border="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" cellpadding="0" cellspacing="1" id="table4"> <tr> <td width="0%" align="left" valign="top"> <p class="header2_black">Explained:<br> <img border="0" src="../images/blank_1x100.gif" width="100" height="1"></td> <td width="0%" align="left" valign="top"> <p class="word_list"> <a href="#cash instruments">cash instrument</a><p class="word_list"> <a href="#derivative">derivative</a><p class="word_list"> <a href="#derivative instrument">derivative instrument</a><p class="word_list"> <a href="#exotic">exotic derivative</a><p class="word_list"> <a href="#linear">linear derivative</a><br> <img border="0" src="../images/blank_1x160.gif" width="160" height="1"></td> <td width="100%" align="left" valign="top"> <p class="word_list"> <a href="#non-linear">non-linear derivative</a><p class="word_list"> <a href="#primary instruments">primary instrument</a><p class="word_list"> <a href="#underliers">underlier</a><p class="word_list"> <a href="#vanilla">vanilla derivative</a><br> <img border="0" src="../images/blank_1x160.gif" width="160" height="1"></td> </tr> </table> </td> </tr> </table> <table border="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" width="310" align="right" id="table5"> <tr> <td align="right" width="9" height="14"></td> <td width="300" height="14"> <font size="2"> </font><font size="4"> </font></td> </tr> <tr> <td align="right" width="9"> </td> <td width="300"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script>  </td> </tr> </table> <p class="body">A <strong><a name="derivative instrument">derivative instrument</a></strong><strong style="font-weight: 400"> (or simply </strong><strong><a name="derivative">derivative</a></strong><strong style="font-weight: 400">) is a financial instrument which derives its value from the value of some other financial instrument or variable. For example, a stock </strong><a href="../articles/option.htm"><strong style="font-weight: 400">option</strong></a><strong style="font-weight: 400"> is a derivative because it derives its value from the value of a <a href="../articles/common_stock.htm">stock</a>. An interest rate </strong> <a href="../articles/swap.htm"> <strong style="font-weight: 400">swap</strong></a><strong style="font-weight: 400"> is a derivative because it derives its value from one or more interest rate indices. The value(s) from which a derivative derives its value is called its </strong><strong><a name="underliers">underlier(s</a>)</strong><strong style="font-weight: 400">.</strong></p> <p class="body"><strong style="font-weight: 400">By contrast, we might speak of </strong><strong><a name="primary instruments">primary instruments</a></strong><strong style="font-weight: 400">, although the term </strong><strong> <a name="cash instruments">cash instruments</a></strong><strong style="font-weight: 400"> is more common. A cash instrument is an instrument whose value is determined directly by markets. Stocks, commodities, currencies and <a href="../articles/coupon_bond.htm">bonds</a> are all cash instruments. The distinction between cash and derivative instruments is not always precise, but it is a useful informal distinction.</strong></p> <p class="body">Derivative instruments are categorized in various ways. One is the distinction between <b><a name="linear">linear</a></b> and <b> <a name="non-linear">non-linear</a></b> derivatives. The former have <a href="../articles/options_spread.htm">payoff diagrams</a> that are linear or almost linear. The latter has payoff diagrams that are highly non-linear. Such non-linearity is always due to the derivative either being an option or having an option embedded in its structure.</p> <p class="body">A somewhat arbitrary distinction is between <b> <a name="vanilla">vanilla</a></b> and <b><a name="exotic">exotic</a></b> derivatives. The former tend to be simple and more common; the latter more complicated and specialized. There is no definitive rule for distinguishing one from the other, so the distinction is mostly a matter of custom. Usage does vary.</p> <p class="body">Exhibit 1 lists some standard derivatives and indicates the categories they fall into as stand alone (as opposed to embedded) instruments.</p> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table6"> <tr> <td width="25%" align="left" valign="top"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="165" align="left" id="table7"> <tr> <td width="160"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td> <td width="11"> </td> </tr> </table> </td> <td width="75%" align="center" valign="top"> <table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="408" cellpadding="0" id="table8"> <tr> <td colspan="4"> <p class="exhibit_header"><span class="exhibit_header">Standard Derivatives</span><br> <span class="exhibit_subheader">Exhibit 1</span></td> </tr> <tr> <td bgcolor="#CC9966" height="2" colspan="4"> <img border="0" src="../images/blank_2x2.gif" width="2" height="2"></td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/asian_option.htm">Asian option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/barrier_option.htm">barrier option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/basket_option.htm">basket option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/binary_option.htm">binary option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/option.htm">call</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> vanilla</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/cap.htm">cap</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> vanilla</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/chooser_option.htm">chooser option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/compound_option.htm">compound option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/contingent_premium_option.htm">contingent premium option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/credit_derivative.htm">credit derivative</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/floor.htm">floor</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> vanilla</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/forward.htm">forward</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> vanilla</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/future.htm">future</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> vanilla</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/lookback_option.htm">lookback option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/option.htm">put</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> vanilla</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/quanto.htm">quanto</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/rainbow_option.htm">rainbow option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/forward_start_option.htm">ratchet option</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> exotic</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/swap.htm">swap</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> vanilla</td> </tr> <tr> <td class="explanatory_text" width="2%" height="20" bgcolor="#FFFFCC" valign="top">  </td> <td class="explanatory_text" width="58%" height="20" bgcolor="#FFFFCC" valign="top"> <a href="../articles/swaption.htm">swaption</a></td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> non-linear</td> <td class="explanatory_text" width="25%" height="20" align="center" bgcolor="#FFFFCC" valign="top"> vanilla</td> </tr> <tr> <td class="body" width="100%" colspan="4"> <p class="exhibit_legend">Standard derivatives are listed. They are categorized as linear/non-linear and as vanilla/exotic. Usage of the vanilla/exotic distinction does vary, so some of the exotics listed above might be considered vanilla by some professionals. Basket options are an obvious example. Among rainbows, most are exotic, but spread options might be considered vanilla. </td> </tr> </table> </td> </tr> </table> <p class="body"></p> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table9"> <tr> <td height="30" valign="bottom" colspan="2"> <p class="header2_black">Related Internal Links</td> </tr> <tr> <td colspan="2" bgcolor="#CC9966" height="2"> <img border="0" src="../images/blank_2x2.gif" width="2" height="2"></td> </tr> <tr> <td bgcolor="#FFFFCC" colspan="2"> <table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" cellpadding="6" id="table10"> <tr> <td width="100%"> <p class="explanatory_text" align="left"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/credit_derivative.htm">credit derivative</a> A derivative instrument designed to transfer credit risk from one party to another.<p class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/risk_management.htm">financial risk management</a> Practices by which a firm optimizes the manner in which it takes financial risk.<p class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><strong style="font-weight: 400"><a href="../articles/forward.htm">forward contract</a> A </strong>trade that is agreed to at one point in time but will take place at some later time.<p align="left" class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/future.htm">future</a> An exchange-traded derivative that is similar to a forward.</p> <p class="explanatory_text" align="left"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/greeks.htm"><strong style="font-weight: 400">Greeks</strong></a><strong style="font-weight: 400"> A set of factor sensitivities, which includes delta and gamma.</strong><p align="left" class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/group_of_30_report.htm">Group of 30 Report</a> An influential 1993 industry report on OTC derivatives.</p> <p class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/hybrid.htm">hybrid instrument</a> A financial instrument that blend characteristics of debt and equity markets.</p> <p align="left" class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><strong style="font-weight: 400"><a href="../articles/notional_amount.htm">notional amount</a> The quantity of an underlier to which a derivative instrument applies.</strong></p> <p align="left" class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="http://www.riskglossary.com/articles/option.htm"><strong style="font-weight: 400">option</strong></a><strong style="font-weight: 400"> A type of derivative instrument.</strong></p> <p class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><strong style="font-weight: 400"><a href="../articles/option_pricing_theory.htm">option pricing theory</a> The body of financial theory used to value options and other derivative instruments.</strong><p class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/options_spread.htm">option spreads</a> Positions combining one or more options in a single underlier.</p> <p class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/path_dependence.htm">path dependence</a> A property of certain exotic options whose terminal value depends upon the path taken by the underlier during the life of the option.<p align="left" class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><strong style="font-weight: 400"><a href="../articles/swap.htm">swap</a> A derivative whereby two parties exchange cash flow streams.</strong></p> <p class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><a href="../articles/united_states_financial_regulation.htm">United States financial regulation</a> An overview.<p align="left" class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><strong style="font-weight: 400"><a href="../articles/volatility.htm">volatility</a> A metric of  variability in a stochastic process.</strong></p> <p align="left" class="explanatory_text"> <img border="0" src="../images/bullet_link_glossary.gif" width="26" height="15"><strong style="font-weight: 400"><a href="../articles/volatility_skew.htm">volatility skew</a> A condition where implied volatilities vary by strike.</strong></p> </td> </tr> </table> </td> </tr> <tr> <td height="30" valign="bottom" colspan="2"> <p class="header2_black">Sponsored Links</td> </tr> <tr> <td colspan="2" bgcolor="#CC9966" height="2"> <img border="0" src="../images/blank_2x2.gif" width="2" height="2"></td> </tr> <tr> <td bgcolor="#FFFFCC" width="75"> <img border="0" src="../images/ad_side_banner_1.jpg" width="103" height="285"></td> <td bgcolor="#FFFFCC" width="99%">  <p class="ad_legend" style="margin-left: 0; margin-bottom:2"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font color="#000000">Ads by Contingency Analysis</font></a></p> <p style="margin-top: 0; margin-bottom: 0"> <iframe src="http://servedbyadbutler.com/adserve/;ID=147917;size=336x265;setID=82436;type=iframe" style="margin: 0px; padding: 0px; border-width: 0px" width="336" height="265" frameborder="0" 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href="http://www.riskbook.com/link/kolb_r_(2002).htm">2002</a>) is a practical introduction to derivatives. Haug (<a target="_blank" href="http://www.riskbook.com/link/haug_e_(1997).htm">1997</a>) is an encyclopedia of pricing formulas for almost any vanilla or exotic derivative. Das (<a target="_blank" href="http://www.riskbook.com/link/das_satyajit_(2003).htm">2003</a>) is the authoritative reference for all things related to derivatives. Taleb (<a target="_blank" href="http://www.riskbook.com/link/taleb_n_(1996).htm">1996</a>) is a sophisticated book about trading derivatives.</p> <table border="0" cellpadding="4" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table12"> <tr> <td width="100" align="left" valign="top"> <map name="FPMap367"> <area target="_blank" href="http://www.riskbook.com/link/kolb_r_(2002).htm" shape="rect" coords="0, 0, 92, 124"> </map> <img border="0" src="../images/book_kolb_r_(2002)_125.gif" usemap="#FPMap367" width="93" height="125"></td> <td align="left" valign="top"> <table border="0" cellpadding="1" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table13"> <tr> <td width="90%" colspan="3"> <p class="title"> <a target="_blank" href="http://www.riskbook.com/link/kolb_r_(2002).htm"> Futures, Options and Swaps</a></td> </tr> <tr> <td colspan="3"> <p class="author"><b>Robert Kolb</b></td> </tr> <tr> <td width="10%"> <map name="FPMap75"> <area href="http://www.riskbook.com/main/ratings.htm" shape="rect" coords="1, 2, 89, 15" target="_blank"></map> <img border="0" src="../images/star_4.gif" usemap="#FPMap75" width="90" height="16"></td> <td width="10%" class="author">quality</td> <td width="70%"> <p class="author"> </td> </tr> <tr> <td width="10%"> <map name="FPMap316"> <area target="_blank" href="http://www.riskbook.com/main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map><img border="0" src="../images/tech_2.gif" usemap="#FPMap316" width="90" height="16"></td> <td width="10%" class="author">technical</td> <td width="70%">  </td> </tr> <tr> <td width="10%"> <p class="author">2002</td> <td width="10%"> </td> <td width="70%"> <p align="center"><map name="FPMap366"> <area target="_blank" coords="0, 0, 145, 19" shape="rect" href="http://www.riskbook.com/link/kolb_r_(2002).htm"> </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap366" width="146" height="20"></td> </tr> </table> </td> </tr> </table> <table border="0" cellpadding="4" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table14"> <tr> <td width="100" align="left" valign="top"> <map name="FPMap496"> <area target="_blank" href="http://www.riskbook.com/link/haug_e_(1997).htm" shape="rect" coords="0, 0, 100, 124"> </map> <img border="0" src="../images/book_haug_espen_(1997)_125.gif" usemap="#FPMap496" width="101" height="125"></td> <td align="left" valign="top"> <table border="0" cellpadding="1" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table15"> <tr> <td width="90%" colspan="3"> <p class="title"> <a target="_blank" href="http://www.riskbook.com/link/haug_e_(1997).htm"> <font size="2">Complete Guide to </font><br> Option Pricing Formulas </a></td> </tr> <tr> <td colspan="3"> <p class="author"><b><span class="verdana10bold">Espen G. Haug </span></b></td> </tr> <tr> <td width="10%"><map name="FPMap481"> <area target="_blank" href="http://www.riskbook.com/main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/star_5.gif" usemap="#FPMap481" width="90" height="16"></td> <td width="10%" class="author">quality</td> <td width="70%"> <p class="author"> </td> </tr> <tr> <td width="10%"><map name="FPMap482"> <area target="_blank" href="http://www.riskbook.com/main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/tech_2.gif" usemap="#FPMap482" width="90" height="16"></td> <td width="10%" class="author">technical</td> <td width="70%">  </td> </tr> <tr> <td width="10%"> <p class="author">1997</td> <td width="10%"> </td> <td width="70%"> <p align="center"><map name="FPMap595"> <area target="_blank" coords="0, 0, 145, 19" shape="rect" href="http://www.riskbook.com/link/haug_e_(1997).htm"> </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap595" width="146" height="20"></td> </tr> </table> </td> </tr> </table> <span style="font-family: Times New Roman; letter-spacing: -0.2pt"> <table border="0" cellpadding="4" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table16"> <tr> <td width="100" align="left" valign="top"> <map name="FPMap591"> <area target="_blank" href="http://www.riskbook.com/link/das_satyajit_(2003).htm" shape="rect" coords="0, 0, 84, 124"> </map> <img border="0" src="../images/book_das_satyajit_(2003)_125.gif" usemap="#FPMap591" width="85" height="125"></td> <td align="left" valign="top"> <table border="0" cellpadding="1" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table17"> <tr> <td width="90%" colspan="3"> <p class="title"> <a target="_blank" href="http://www.riskbook.com/link/das_satyajit_(2003).htm"> Swaps/Financial Derivatives</a></td> </tr> <tr> <td colspan="3"> <p class="author"><b>Satyajit Das</b></td> </tr> <tr> <td width="10%"> <p class="author"> <map name="FPMap592"> <area target="_blank" href="http://www.riskbook.com/main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/star_5.gif" usemap="#FPMap592" width="90" height="16"></td> <td width="10%" class="author">quality</td> <td width="70%"> <p class="author"> </td> </tr> <tr> <td width="10%"> <p class="author"> <map name="FPMap593"> <area target="_blank" href="http://www.riskbook.com/main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/tech_2.gif" usemap="#FPMap593" width="90" height="16"></td> <td width="10%" class="author">technical</td> <td width="70%">  </td> </tr> <tr> <td width="10%"> <p class="author">2003</td> <td width="10%"> </td> <td width="70%"> <p align="center"><map name="FPMap594"> <area target="_blank" coords="0, 0, 145, 19" shape="rect" href="http://www.riskbook.com/link/das_satyajit_(2003).htm"> </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap594" width="146" height="20"></td> </tr> </table> </td> </tr> </table> <table border="0" cellpadding="4" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table18"> <tr> <td width="100" align="left" valign="top"> <map name="FPMap676"> <area target="_blank" href="http://www.riskbook.com/link/taleb_n_(1996).htm" shape="rect" coords="0, 0, 87, 124"> </map> <img border="0" src="../images/book_taleb_n_(1996)_125.gif" usemap="#FPMap676" width="88" height="125"></td> <td align="left" valign="top"> <table border="0" cellpadding="1" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table19"> <tr> <td width="90%" colspan="3"> <p class="title"> <a target="_blank" href="http://www.riskbook.com/link/taleb_n_(1996).htm"> Dynamic Hedging</a></td> </tr> <tr> <td colspan="3"> <p class="author"><b>Nassim Taleb</b></td> </tr> <tr> <td width="10%"> <map name="FPMap677"> <area target="_blank" href="http://www.riskbook.com/main/ratings.htm" shape="rect" coords="0, 0, 89, 15"></map> <img border="0" src="../images/star_6.gif" usemap="#FPMap677" width="90" height="16"></td> <td width="10%" class="author">quality</td> <td width="70%"> <p class="author"> </td> </tr> <tr> <td width="10%"> <map name="FPMap397"> <area target="_blank" href="http://www.riskbook.com/main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map><img border="0" src="../images/tech_3.gif" usemap="#FPMap397" width="90" height="16"></td> <td width="10%" class="author">technical</td> <td width="70%">  </td> </tr> <tr> <td width="10%"> <p class="author">1996</td> <td width="10%"> </td> <td width="70%"> <p align="center"><map name="FPMap678"> <area target="_blank" coords="0, 0, 145, 19" shape="rect" href="http://www.riskbook.com/link/taleb_n_(1996).htm"> </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap678" width="146" height="20"></td> </tr> </table> </td> </tr> </table> 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