Newly revised and updated to reflect the field's most recent developments, this professional guide supplies a complete introduction to options valuation and trading, from the working fundamentals to the most innovative pricing models and strategies used by today's top investment professionals. Advanced strategies, numerous expanded examples, and special Decision Structure sections enable practitioners to select an appropriate options strategy and evaluate its risks and rewards in various market environments. Features a complete appendix of option pricing strategies--including implied volatility--and a spreadsheet format version of the Black-Scholes model.