Kolb (a former professor of finance at the U. of Miami) and Overdahl (Chief Economist at the Commodity Futures Trading Commission) provide an explanatory treatment of the markets for futures, options, and swaps, the three most important types of financial derivatives. The text is guided by an emphasis on the common pricing framework of these financial derivatives--i.e., the proposition that rational prices preclude arbitrage profits. It includes examination of market developments and regulatory changes that have taken place since the last edition appeared in 20003 and also includes emphasis on the roles of international competition and electronic trading systems. The US Commodity Futures Modernization Act of 2000 also receives significant attention. Annotation ©2007 Book News, Inc., Portland, OR (booknews.com)