rditti begins by describing each class of derivative and the institutional arrangements that characterize the markets in which these instruments trade. He then examines the most basic derivatives with respect to their risk transference properties, risk management applications, and pricing. Subsequent chapters follow the evolution of markets in terms of new instruments, the factors inspiring their development, and the alterations in pricing technology required by more complex derivatives such as SCOREs, SuperShares, exotics, SMOs, PACs, and TACs. Annotation c. by Book News, Inc., Portland, Or.