An Introduction to Derivative Securities, Financial Markets, and Risk Management

Written by two of the most distinguished finance scholars in the industry, this introductory textbook on derivatives and risk management is highly accessible in terms of the concepts as well as the mathematics.

With its economics perspective, this rewritten and streamlined second edition textbook, is closely connected to real markets, and:

Beginning at a level that is comfortable to lower division college students, the book gradually develops the content so that its lessons can be profitably used by business majors, arts, science, and engineering graduates as well as MBAs who would work in the finance industry.
Contents: Introduction:Derivatives and Risk ManagementInterest RatesStocksForwards and FuturesOptionsArbitrage and TradingFinancial Engineering and SwapsForwards and Futures:Forwards and Futures MarketsFutures TradingFutures RegulationsThe Cost-of-Carry ModelThe Extended Cost-of-Carry ModelFutures HedgingOptions:Options Markets and TradingOption Trading StrategiesOption RelationsSingle-Period Binomial ModelMultiperiod Binomial ModelThe Black–Scholes–Merton ModelUsing the Black–Scholes–Merton ModelInterest Rate Derivatives:Yields and Forward RatesInterest Rate SwapsSingle-Period Binomial HJM ModelMultiperiod Binomial HJM ModelThe HJM Libor ModelRisk Management Models
Readership: Undergraduate and graduate students of economics, business, arts, science and engineering, and MBAs who would work in the finance industry.Derivatives;Financial Markets;Risk Management;Arbitrage;Financial Engineering;Forwards;Futures;Call Options;Put Options;European Options;American Options;Swaps;Currency Swaps;Interest Rate Swaps;Commodity Swaps;Equity Swaps;Credit Default Swaps;Commodity Derivatives;Equity Derivatives;Index Derivatives;Interest Rate Derivatives;Commodities;Margins and Daily Settlements;Binomial Model;Black-Scholes Model;Black-Scholes-Merton Model;Delta Hedging;Gamma Hedging;Heath-Jarrow-Morton Model;Libor Model,;Forward Rate Agreements;Interest Rate Futures;Interest Rate Options;Market Manipulation;Regulation;Derivatives Exchanges00