EDUCBA

EDUCBA

MENUMENU
  • Free Tutorials
  • Free Courses
  • Certification Courses
  • 250+ Courses All in One Bundle
  • Login
Home Finance Finance Resources Top Finance Books Derivative Books
Secondary Sidebar
Finance Blog
  • Top Finance Books
    • Business Finance Books
    • Derivative Books
    • Financial Management Books
    • Risk Management Books
    • Insurance Books
    • Taxation Books
    • Forex Trading Books
  • Accounting fundamentals (700+)
  • Asset Management Tutorial (200+)
  • Banking (44+)
  • Corporate Finance Basics (373+)
  • Credit Research Fundamentals (6+)
  • Economics (88+)
  • Finance Formula (386+)
  • Financial Modeling in Excel (17+)
  • Investment Banking Basics (140+)
  • Investment Banking Careers (29+)
  • Trading for dummies (69+)
  • valuation basics (27+)
  • Insurance Resources (14+)

Derivative Books

Best books to learn Derivatives

Derivatives are financial products that draw their value from underlying assets such as stocks, bonds, and other traditional securities. They are crucial for risk mitigation, etc. These top 10 derivative books can help readers of all levels of knowledge better understand derivatives. It can be a starting point for beginners and a reference tool for experts.

The top 10 derivative books are listed here to help you develop your career and gain the necessary information (the sequence is not as per ratings).

# Book Author Publishing Date Rating
1 Derivatives: The Wild Beast of Finance Alfred Steinherr 2000 Amazon: 3.6
Goodreads: 3.8
2 Derivatives Demystified Andrew M. Chisholm 2010 Amazon: 4.2
Goodreads: 3.81
3 Derivatives – A Guide to Alternative Investments David M. Weiss 2014 Amazon: 4.2
Goodreads: 3.8
4 Interest Rate Swaps and Other Derivatives Howard Corb 2012 Amazon: 4.6
Goodreads: 4.67
5 Options, Futures, and Other Derivatives John C. Hull 2014 Amazon: 4.6
Goodreads: 4.15
6 Bite The Ass Off A Bear Garth Friesen 2017 Amazon: 4.5
Goodreads: 4
7 Pricing and Hedging Financial Derivatives – A Guide for Practitioners Leonardo Marroni, Irene Perdomo 2013 Amazon: 3.8
Goodreads: 4.6
8 An Introduction to Derivatives Securities, Financial Markets, and Risk Management Robert Jarrow, Arkadev Chatterjea 2013 Amazon: 4.1
Goodreads: 4.33
9 Applied Quantitative Finance for Equity Derivatives Jherek Healy 2021 Amazon: 5
Goodreads: 5
10 Manufacturing and Managing Customer-Driven Derivatives Dong Qu 2016 Amazon: 5
Goodreads: 4

Let us discuss and outline each derivative book’s reviews and key points in detail.

Top 10 Derivative Books

Book #1: Derivatives: The Wild Beast of Finance

Author: Alfred Steinherr

Start Your Free Investment Banking Course

Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

derivative books: The Wild Beast of Finance

Buy this book here.

Review:

The book explores the role that derivatives play in the growth and diversification of national and world economies. The author makes numerous bold statements concerning the possible risk and dangers of the derivatives market in this book. However, the writing of this book makes understanding this challenging concept easier.

Key Points:

  • The author discusses the profound effects of these financial instruments on the future of international banking while placing derivatives in a broad historical and economic framework
  • It lists well-known derivatives disasters like Barings and Orange County
  • Steinherr has offered a fun and enlightening canter through the derivatives world for professionals, officials, and students alike.

Book #2: Derivatives Demystified

Author: Andrew M. Chisholm

derivative books: Derivatives Demystified

Buy this book here.

Review:

The derivative book is an instruction manual for everyone curious about trading in derivatives. The author attempts to explain the subject using a simple style. He uses basic language and mathematics. The book makes an effort to give the reader solid basics. Anyone participating in the investing market can use this book as a guide.

Key Points:

  • The book demonstrates the use of each building block in diverse markets to address various risk management and trading issues
  • The new edition also provides a thorough background of derivatives, including information on their usage before the present credit crisis
  • The most distinctive feature of this book is its emphasis on case studies, examples, and real-world applications of various derivatives.

Book #3: Derivatives – A Guide to Alternative Investments

Author: David M. Weiss

A Guide to Alternative Investments

Buy this book here.

Review:

The book is a compilation of the author’s 30-year brokerage industry experience. The author introduces readers to the ideas of derivatives. It follows a structured style to clarify fundamental ideas and lay the groundwork for more complicated concepts.

Key Points:

  • The book methodically describes the structure, application, and significance of all goods that make up the derivatives universe
  • It presents the market participants, explains the mechanics of trade, and clarifies the functions of regulation and oversight for each product
  • You can quickly learn about the options of the market.

Book #4: Interest Rate Swaps and Other Derivatives

Author: Howard Corb

Interest Rate Swaps and Other Derivatives

Buy this book here.

Review:

Corb’s book on derivatives is one of the few that blends academic rigor with real-world trading. The book acts as a textbook and essential reference for a wide variety of readers looking for a comprehensive understanding of these marketplaces. This book’s conversational approach is its most engaging feature. The book also appeals to readers who work in this industry, including professionals, investors, and students.

Key Points:

  • The author thoroughly covers every type of derivative in the book
  • It covers a wide range of items in this market area and includes illustrative examples and extensive applications
  • It comprehensively introduces complex crafts and structures, developing an intuitive sense of the items and their application in the market.

Book #5: Options, Futures, and Other Derivatives

Author: John C. Hull

Options, Futures, and Other Derivatives

Buy this book here.

Review:

The book provides a contemporary look at the industry by analyzing the theory-practice gap. It offers a superb supplementary package of mathematical and sector examinations. It also helps you understand how the call option works and how to trade the put option.

Key Points:

  • It assists both students and practitioners in keeping up with the quick pace of change in today’s derivatives markets
  • It covers the Black-Scholes-Merton formulas, securitization, the overnight indexed swap, etc
  • It also includes modeling commodity prices and the valuation of commodity derivatives.

Book #6: Bite The Ass Off A Bear

Author: Garth Friesen

Bite the Ass Off a Bear

Buy this book here.

Review:

The primary goal of this book is to help traders and investors understand that working well with others will bring success rather than being driven by greed. Additionally, it lists all the rewards and hazards associated with trading in this challenging financial sector. Both aspiring and experienced traders need to have a strong work ethic, a can-do mentality, and a likable personality.

Key Points:

  • It explains how to evaluate your suitability for trading life properly
  • Learn about a market maker, a prop trader, and execution traders
  • Understand the qualities hiring managers at hedge funds look for in a candidate
  • Also, find out how to handle the asset management job interview process.

Book #7: Pricing and Hedging Financial Derivatives – A Guide for Practitioners

Author: Leonardo Marroni, Irene Perdomo

Pricing and Hedging Financial Derivatives

Buy this book here.

Review:

This guide for practitioners emphasizes giving readers practical methods for pricing and hedging derivatives. Additionally, it offers the expertise and understanding required for traders and financial experts to comprehend the specifics of this financial instrument. The book has real-world examples that cover everything from Monte Carlo techniques to commonly structured product payoffs and option payments with delta hedging.

Key Points:

  • Outlines tried-and-true derivatives pricing and hedging methods for commodities, FX, fixed income, equities, multi-asset, and cross-assets
  • Offers professional advice on the creation of structured products, along with a variety of practical examples
  • All examples from the book are available in Excel on the companion website, along with the source code.

Book #8: An Introduction to Derivatives Securities, Financial Markets, and Risk Management

Author: Robert Jarrow, Arkadev Chatterjea

Derivative Securities, Financial Markets, and Risk Management

Buy this book here.

Review:

Any student who wants to study the complexities of derivatives should use this book. The revised and simplified second edition textbook is closely related to actual markets because of its economic orientation. The book structure makes it simple to comprehend this complex yet crucial subject.

Key Points:

  • The book offers appropriate levels of mathematics, and the current state of the markets has a significant impact on mathematics.
  • The concepts and mathematics in the introductory text on derivatives and risk management are pretty understandable.

Book #9: Applied Quantitative Finance for Equity Derivatives

Author: Jherek Healy

Applied Quantitative Finance for Equity Derivatives

Buy this book here.

Review:

The book includes currently used equity derivatives models. Generally speaking, books give readers abstract knowledge that may be challenging to use practically. This book educates readers unfamiliar with equity derivatives. These qualities make the book a top choice for students and professionals.

Key Points:

  • The book addresses cash dividends for European, American, or exotic options
  • It explains the finite difference techniques for American options and exotics
  • It also includes non-parametric regression for American options in randomized simulations.

Book #10: Manufacturing and Managing Customer-Driven Derivatives

Author: Dong Qu

Manufacturing and Managing Customer-Driven Derivatives

Buy this book here.

Review:

The book guides derivatives fund managers, traders, and students. It explains the latest concepts and provides a clear understanding of derivatives. It also illustrates its various perspectives and aspects. Additionally, you learn about structured derivatives.

Key Points:

  • This derivative book explores the fundamentals of derivatives and their life cycle
  • Understand the baking process of complex derivatives
  • Most importantly, the book discusses the complex topic of Customer-driven derivative products and their manufacturing process.
0 Shares
Share
Tweet
Share
Primary Sidebar
Footer
About Us
  • Blog
  • Who is EDUCBA?
  • Sign Up
  • Live Classes
  • Corporate Training
  • Certificate from Top Institutions
  • Contact Us
  • Verifiable Certificate
  • Reviews
  • Terms and Conditions
  • Privacy Policy
  •  
Apps
  • iPhone & iPad
  • Android
Resources
  • Free Courses
  • Investment Banking Jobs Offer
  • Finance Formula
  • All Tutorials
Certification Courses
  • All Courses
  • Financial Analyst All in One Bundle
  • Investment Banking Training
  • Financial Modeling Course
  • Equity Research Course
  • Private Equity Training Course
  • Business Valuation Course
  • Mergers and Acquisitions Course

ISO 10004:2018 & ISO 9001:2015 Certified

© 2022 - EDUCBA. ALL RIGHTS RESERVED. THE CERTIFICATION NAMES ARE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS.

EDUCBA
Free Financial Modeling Course

3 Statement Model Creation, Revenue Forecasting, Supporting Schedule Building, & others

*Please provide your correct email id. Login details for this Free course will be emailed to you

By signing up, you agree to our Terms of Use and Privacy Policy.

EDUCBA Login

Forgot Password?

By signing up, you agree to our Terms of Use and Privacy Policy.

EDUCBA
Free Investment Banking Course

Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

*Please provide your correct email id. Login details for this Free course will be emailed to you

By signing up, you agree to our Terms of Use and Privacy Policy.

EDUCBA

*Please provide your correct email id. Login details for this Free course will be emailed to you

By signing up, you agree to our Terms of Use and Privacy Policy.

Let’s Get Started

By signing up, you agree to our Terms of Use and Privacy Policy.

This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy

Loading . . .
Quiz
Question:

Answer:

Quiz Result
Total QuestionsCorrect AnswersWrong AnswersPercentage

Explore 1000+ varieties of Mock tests View more