To become successful in the bond options market, it is important for professionals to gain a basic, yet thorough understanding of how options are priced, traded, and used in interest-rate risk and fixed-income portfolio management. Provides practical answers to questions that new participants will ask as they become more sophisticated in the bond option market. It describes the U.S. government bond options markets and discusses how options pricing and computer technologies are used in market-making, strategic trading, and value investing. After introducing standard options terminology, it provides background data on U.S. Treasury bonds, bond options pricing models, advanced pricing models, the fundamentals of bond options dealing, strategies driven by interest rate forecasts, the most widely used structured portfolio strategies involving options, and more.
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Trading and Investing in Bond Options To become successful in the bond options market, it is important for professionals to gain a basic, yet thorough understanding of how options are priced, traded, and used in interest-rate risk and fixed-income portfolio management.
US government bond options make up the single most important options market for institutional investors. Written by a prominent analyst of options markets, this book gives readers an A-to-Z look at US government bond options markets, including how options pricing and computer technologies are used in dealing, trading and investing in these options. The text includes topics such as market making, relative-value trading and the use of state-of-the-art trading systems; features numerous examples to illustrate the various strategies discussed; compares the differences between the Japanese and US bond markets and explains how these differences may impact options trading on Japanese government bonds.
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