From his experience that students able to carry on cocktail party conversations using the jargon of derivative securities may be clueless about the basics, Prisman (business, York U., Toronto) has chosen to lean heavily toward mastery of the core theoretical concepts of option pricing. His clearly-defined no-arbitrage perspective combining algorithms, analytical modeling, and the software packages most widely used in managerial finance drives this text suitable for advanced business courses. This approach and the CD-ROM modules strive to be accessible, though familiarity with the usual prerequisites in calculus, statistics, and financial economics is assumed. Chapters include worked examples, plotted values, questions, and problems. Annotation c. Book News, Inc., Portland, OR (booknews.com)