This book is appropriate for graduate and advanced undergraduate elective courses in business, economics, and financial engineering. It also suitable for practitioners who want to acquire a working knowledge of how derivatives can be analyzed.

This book provides a unifying approach to the valuation of all derivatives not just futures and options. The book assumes that the reader has taken an introductory course in finance and an introductory course in probability and statistics. No prior knowledge of options, futures contracts, swaps, and so on is assumed. It is not therefore necessary for students to take an elective course in investments prior to taking a course based on this book.