The use of American style equity options as hedging instrument has gained currency in recent times. This phenomenon devolves from the ever-expanding need by individuals, corporations and governments to hedge away their financial risks and the clarion call for derivative securities that give the...

This article establishes the Poisson optional stopping times (POST) method by [22] as a near-universal method for solving liquidity-constrained American options, or, equivalently, penalised optimal-stopping problems. In this setup, the decision maker is permitted to "stop", i.e. exercise the...

Part 1: Derivatives Fundamentals for Asset Managers -- Chapter 1: Introduction -- Chapter 2: Equity Derivatives -- Chapter 3: Bond-Related Derivatives -- Chapter 4: Foreign Exchange Derivatives -- Chapter 5: Volatility Derivatives -- Chapter 6: Managing Volatility and Capturing Returns Through...