Includes bibliographical references and index.

1. Introduction --
2. Mechanics of Futures Markets --
3. Hedging Strategies Using Futures --
4. Interest Rates --
5. Determination of Forward and Futures Prices --
6. Interest Rate Futures --
7. Swaps --
8. Securitization and the Credit Crisis of 2007 --
9. Mechanics of Options Markets --
10. Properties of Stock Options --
11. Trading Strategies Involving Options --
12. Binomial Trees --
13. Wiener Processes and Ito's Lemma --
14. The Black-Scholes-Merton Model --
15. Employee Stock Options --
16. Options on Stock Indices and Currencies --
17. Options on Futures. 18. Greek Letters --
19. Volatility Smiles --
20. Basic Numerical Procedures --
21. Value at Risk --
22. Estimating Volatilities and Correlations --
23. Credit Risk --
24. Credit Derivatives --
25. Exotic Options --
26. More on Models and Numerical Procedures --
27. Martingales and Measures --
28. Interest Rate Derivatives: The Standard Market Models --
29. Convexity, Timing, and Quanto Adjustments --
30. Interest Rate Derivatives: Models of the Short Rate --
31. Interest Rate Derivatives: HJM and LMM --
32. Swaps Revisited --
33. Energy and Commodity Derivatives --
34. Real Options --
35. Derivatives Mishaps and What We Can Learn from Them.

This text represents how academia and real-world practice have come together with a common respect and focus of theory and practice. It provides a unifying approach to the valuation of all derivatives. This popular course text is considered to be the bible by practitioners.