An option is the right to sell a stock later at a price agreed upon today. On the most speculative side, options are risk on a stock's movements; at the other end of the spectrum, options are insured against losses by hedging list position. This text provides practical applications of options concepts rather than a discussion of option theory by itself. It deals with the pricing and hedging of option contracts with a particular emphasis on the design of option strategies. Using specific cases of options on stocks, stock indices, foreign exchange, futures contracts and interest rate instruments, this book enables practitioners to acquaint themselves with the state-of-the-art in the field. It also explains the quantitative approaches for the professional using options to manage risk.