Commodity Option Pricing: A Practitioner's Guide

“It has been very hard to find a comprehensive option pricing book covering all exchange-traded commodities, until Iain Clark's book. Commodity Option Pricing is a must-read for option traders, risk managers and quantitative analysts. The author combines academic rigor with real-world examples. Practitioners can find an extremely useful toolkit in option pricing and an excellent introduction to various commodities.”

Joseph Y. Chen, Chief, Market Analytics, Nexen

“Being himself a practitioner with a wealth of experience, Iain knows what is relevant to the daily work of commodities trading desks. He uses his remarkable pedagogical skills to develop the reader's intuition for the models and products before delving into the practicalities of the commodities markets. Many of the details covered in this book cannot be found elsewhere in the literature. I am pleased to recommend this book to quants and traders, who will soon find themselves relying on it in their daily work.”

Paul Bilokon, Director, Deutsche Bank

“Option pricing analytics for trading commodity derivatives can be quite different from those of equity and fixed income derivatives. This book fills a gap in current literature by presenting a comprehensive treatise on the risk characteristics associated with pricing and hedging commodity derivatives. The author strikes a fine balance between option pricing theory and financial practice in the markets. The materials are succinctly written, with clear and insightful descriptions ...