An Introduction to Derivatives and Risk Management is an ideal textbook to establish the foundation of financial derivatives and their uses in managing the risk. A perfect blend of theory and practice, this book aims to help readers navigate through the complex and ever-changing world of derivatives and risk management in an easy-to-follow style. A variety of real-time risk management practices, boxed inserts, end-of-chapter practical applications, and minimal use of technical mathematics make the text accessible and engaging. Detailed discussions about the derivatives markets and risk management practices in India, along with suitable examples, have also been incorporated.
Besides postgraduate students specializing in finance, this book with its application-oriented approach would also be useful for scholars, researchers and practitioners.
- Detailed coverage of global as well as Indian derivative markets using contemporary market data references, product specification, trading and settlements practices, and regulatory agencies.
- Latest data, articles and examples reflecting changes in today's financial world
- Making the Connection inserts to establish a better linkage between the theory of derivatives and risk management and the practice
- Taking Risk in Life feature presents real-life situations which help readers to better interpret various risks faced in life
- Includes a licence key for our digital learning app, Cengage App, that provides access to flashcards, self-assessments, references, list of symbols and important formulas
- To access online material, visit http://login.cengagebrain.com. Register as a new user or log in as an existing user if you already have an account with Cengage. Click on the tab Find Product with free Access, search by ISBN (9789353500511), and download the files.
CHAPTER 1 Introduction
CHAPTER 2 Structure of Derivatives Markets
PART I Options
CHAPTER 3 Principles of Option Pricing
CHAPTER 4 Option Pricing Models: The Binomial Model
CHAPTER 5 Option Pricing Models: The Black–Scholes–Merton Model
CHAPTER 6 Basic Option Strategies
CHAPTER 7 Advanced Option Strategies
PART II Forwards, Futures, and Swaps
CHAPTER 8 Principles of Pricing Forwards, Futures, and Options on Futures
CHAPTER 9 Futures Arbitrage Strategies
CHAPTER 10 Forward and Futures Hedging, Spread, and Target Strategies
CHAPTER 11 Swaps
PART III Advanced Topics
CHAPTER 12 Interest Rate Forwards and Options
CHAPTER 13 Advanced Derivatives and Strategies
CHAPTER 14 Financial Risk Management Techniques and Applications
CHAPTER 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
Don M. Chance
Don M. Chance, Ph.D., CFA, holds the James C. Flores Endowed Chair of MBA Studies and is Professor of Finance at the E.J. Ourso College of Business at Louisiana State University.
Robert Brooks
Robert Brooks is the Wallace D. Malone, Jr. Endowed Chair of Financial Management at The University of Alabama; president of derivatives consulting firm Financial Risk Management, LLC (www.frmhelp.com); and founding partner of money management firm BlueCreek Investment Partners, LLC (www.bluecreekip.com.
Sanjay Dhamija
Sanjay Dhamija is Professor at International Management Institute, New Delhi. He has a doctorate in finance, M.Com, LLB, FCMA, FCS with more than 34 years of experience in teaching and industry.
