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Full Description
This text equips you with a rock-solid understanding of how derivatives are used to manage the risks of financial decisions. Extremely student friendly, market-leading "Introduction To Derivatives and Risk Management," 11th Edition, is packed with real-world examples while keeping technical mathematics to a minimum. With a blend of institutional material, theory and practical applications, the text 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. The Taking Risk in Life feature illustrates the application of risk management in real-world financial decisions.
Contents
1. Introduction.
2. Structure of 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. Forward and Futures Hedging, Spread, and Target Strategies.
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 in an Organization.
Appendix A: Solutions to Concept Checks
Appendix B: References.
Appendix C: List of Symbols.
Appendix D: List of Important Formulas.
Glossary.
Index.



