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Full Description
One book gives you a solid understanding of how derivatives are used to manage the risks of financial decisions. Extremely reader friendly, with real-world examples while keeping technical mathematics to a minimum. With a blend of institutional material, theory, and practical applications, the book delivers detailed coverage of options, futures, forwards, swaps, and risk management as well as a balanced introduction to pricing, trading, and strategy. The financial information throughout reflects the most recent changes in the derivatives market--one of the most volatile sectors in the financial world.
Contents
1. Introduction.2. Derivatives Markets.Part I: OPTIONS.3. Principles of Options Pricing.4. Option Pricing Models: The Binomial Model.5. Option Pricing Models: The Black-Scholes-Merton Model.6. Basic Option Strategies.7. Advanced Option Strategies.Part II: FORWARDS, FUTURES, AND SWAPS.8. Principles of Pricing Forwards, Futures, and Options on Futures.9. Futures Arbitrage Strategies.10. Hedging.11. Swaps.Part III: ADVANCED TOPICS.12. Interest Rate Forwards and Options.13. Advanced Derivatives and Strategies.14. Financial Risk Management Techniques and Applications.15. Managing Risk.Appendix A: List of Important Formulas.Appendix B: References.Appendix C: Solutions to Concepts.Glossary.Index.



