This edition of the book is updated, revised and expanded. There are 6 entirely new chapters, and substantial revisions were made to 3 others. The changes were necessitated by a host of new products on the market. In addition there is a recognition of the importance of the use of futures options in stock and commodities portfolios. The new products include LEAPs, CAPs, and PERCs.
Leaps are long-term options, CAPs are index options that resemble vertical spreads.
PERCs are a type of preferred stock that has a redemption factor built in. There are two new chapters on futures options. The first concentrates on definitions, pricing, and strategies that are unique to futures options. The second concentrates on the use of options in spreading strategies. One of the new chapters deals with advanced mathematical concepts.