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Study Resources for Market Risk and Options Practice

Article Quant Q&A · Author: Victor123
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Summary

The discussion asks where to find practice problems for market risk, with particular interest in vanilla and exotic options. Responses suggest using free FRM-style exercises and an exam with explanations, consulting Carol Alexander's Market Risk Analysis, and looking for risk materials published by large banks. Another recommendation is Nassim Taleb's Dynamic Hedging, which focuses mainly on options trading and may also support study of risk management.

These are reading and practice-resource suggestions rather than a structured curriculum or a method for measuring market risk. The discussion gives no comparison of the materials, sample problems, or evidence about their coverage or quality. One respondent recommends complementing the options-focused book with more recent papers, so readers should treat the list as a starting point and check whether each resource matches their needs, especially for exotic options.

Key ideas

  • FRM practice materials can provide market-risk exercises, and one suggested exam includes explanations.
  • Market Risk Analysis by Carol Alexander is offered as a general reference.
  • Dynamic Hedging is suggested for options trading concepts relevant to risk management.
  • The recommendations are informal and do not assess the depth or coverage of each resource.

Tags

Risk managementOptions
Full text
# Books on Market Risk for practice problems


# Books on Market Risk for practice problems












Are there any books with practice problems for Market Risk, with special emphasis on vanilla and exotic options? Or should I look into old exam papers from FRM as sold by Kaplan/GARP?

## Answer by vega (score 3, accepted)

https://quant.stackexchange.com/a/18328

Lookup something like "free FRM exam" or "FRM exercises". Here is a free exam from GARP itself, with explanations: http://www.garp.org/media/613028/frm%20practice%20exam052711.pdf

I hope this helps

Good luck!

## Answer by Ascorpio (score 3)

https://quant.stackexchange.com/a/18354

Interesting question. The one book I heard about is "Market Risk Analysis" by Carol Alexander. However I think you should try to search for some company specific materials. Sometimes big banks like Credit-Suisse or Deutche Bank publish some materials which are hard-to-find by other means.

## Answer by Quantopik (score 2)

https://quant.stackexchange.com/a/18302

I'm not an expert of market risk, but, as regards the market risk references I know, the best one and more related to the question posted above is Dynamic Hedging by N. N. Taleb.

Here below you can find the full reference:

> Taleb, Nassim. Dynamic hedging: managing vanilla and exotic options. Vol. 64. John Wiley & Sons, 1997.

It concentrates the book on options trading mainly, but you can find it useful in terms of risk management too, and, so I suggest you read that by integrating with more recent papers about the topic.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.