Request for consultation
Your form is submitting...
Overview
Coupling real business examples with minimal technical mathematics, "Introduction To Derivatives and Risk Management," 11th Edition, blends institutional material, theory and practical applications to give students a solid understanding of how derivatives are used to manage the risks of financial decisions. It delivers detailed coverage of options, futures, forwards, swaps and risk management and a balanced introduction to pricing, trading and strategy. The financial information throughout this edition reflects 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. Cengage Learning Testing Powered by Cognero, included in this edition, is a flexible, online testing resource that gives instructors limitless testing possibilities.
- An update of contemporary market data references, websites and regulatory agencies is included.
- Secured Overnight Financing Rate (SOFR) has generally replaced the London Inter-Bank Offered Rate (LIBOR) throughout, with some historical references remaining.
- The text includes updated and improved spreadsheet software with supporting online Appendix E.
- Located in selected chapters, the Taking Risk in Life feature presents real-life situations, illustrating the application of risk management principles for decisions in general.
- Making the Connection boxes link chapter concepts to real-world finance using actual market data and business examples.
- Concept Checks at each chapter’s end help students review key ideas, with solutions available in the book and online for easy self-assessment.
- Online Appendix B offers curated articles and readings by chapter and topic, plus web links to keep course content current and market-relevant.
- "Concept Checks" Ensure Student Comprehension: The "Concept Checks" questions at the end of each chapter help students understand the basic materials covered in the text. Solutions to these questions at the end of the book as well as online allow students to check their own comprehension.
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.