This book is written by a trader who prices and risk manages exotic options as part of his everyday job and knows where the risks of these options lie. Theory alone is not enough to understand the full complexity and practical implications of exotic options and an understanding the theory and mathematical derivation is a prerequisite for dealing with them on a day-to-day basis. This book explains these practical implications and how it affects the price. The necessary mathematical derivations and tools are also explained to give the reader a fu…