Dynamic Hedging

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Nassim Nicholas Taleb authored the book Dynamic Hedging: Managing Vanilla and Exotic Options. In 1996, John Wiley & Sons published Dynamic Hedging. The book supposedly teaches how to manage derivatives risk when investing capital.

In the introduction, Taleb writes that less than twenty per cent of the book's content is about statistical techniques such as value at risk. "The bulk of the book", he writes, "examines issues such as the proper mark-to-market valuation of trading positions, the determination of necessary reserves against valuation uncertainty, the structuring of limits to control risk taking, and the review of mathematical models and determination of how they can contribute to risk control." According to Taleb, this low emphasis on statistical techniques is consistent with "the allocation of effort in the corporate risk management staff areas with which [he is] familiar".