Derivatives are everywhere in the modern world and it is important for everyone in banking, investment and finance to have a good understanding of the subject. Derivatives Demystified provides a step-by-step guide to the subject, enabling the reader to have a solid, working understanding of key derivative products. Adopting a highly accessible approach, the author explains derivative products in straightforward terms and without the complex mathematics that underlie the subject, focusing on practical applications, case studies and examples of how the products are used to solve real-world problems. Derivatives Demystified follows a sequence that is designed to show that, although there are many applications of derivatives, there are only a small number of basic building blocks, namely forwards and futures, swaps and options. The book shows how each building block is applied to different markets and to the solution of various risk management and trading problems. This new edition will be fully revised to reflect the many changes the derivatives markets have seen over the last three years. New material will include a comprehensive history of derivatives, leading up to their use and abuse in the current credit crisis. It will also feature new chapters on regulation and control of derivatives, commodity derivatives, credit derivatives and structured products and new derivative markets including inflation linked and insurance linked products. Derivatives Demystified is essential reading for everyone who operates in the financial markets or within the corporate environment who requires a good understanding of these important financial instruments.
Book Details:
- Author: Andrew M. Chisholm
- ISBN: 9780470749371
- Year Published: 2010
- Pages: 288
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Derivatives are everywhere in the modern world and it is important for everyone in banking, investment and finance to have a good understanding of the subject. Derivatives Demystified provides a step-by-step guide to the subject, enabling the reader to have a solid, working understanding of key derivative products. Adopting a highly accessible approach, the author explains derivative products in straightforward terms and without the complex mathematics that underlie the subject, focusing on practical applications, case studies and examples of how the products are used to solve real-world problems. Derivatives Demystified follows a sequence that is designed to show that, although there are many applications of derivatives, there are only a small number of basic building blocks, namely forwards and futures, swaps and options. The book shows how each building block is applied to different markets and to the solution of various risk management and trading problems. This new edition will be fully revised to reflect the many changes the derivatives markets have seen over the last three years. New material will include a comprehensive history of derivatives, leading up to their use and abuse in the current credit crisis. It will also feature new chapters on regulation and control of derivatives, commodity derivatives, credit derivatives and structured products and new derivative markets including inflation linked and insurance linked products. Derivatives Demystified is essential reading for everyone who operates in the financial markets or within the corporate environment who requires a good understanding of these important financial instruments.
Derivatives are everywhere in the modern world. For example, if you have the option to extend a loan or redeem a mortgage early then you have a derivative product. If a company has the opportunity to increase its production facilities or exploit some new technology then it has what is known as a real option. Many people who operate in the financial markets and who handle derivatives are not specialists in higher mathematics, nor is it important that they be so. What they need to understand is how the products can be used in practice to create risk management, investment and trading solutions that are appropriate for particular organizations in particular market circumstances.
· NEW MATERIAL fully updated with over 30% new material on the latest developments in the derivatives markets, up to and including Derivatives role in the global financial crisis. · ESSENTIAL IN CURRENT MARKETS even in the current market conditions, asset managers and other investors need to use derivatives as no other asset class allows them to meet certain needs effectively · PRACTICAL GUIDE offers practical advice, case studies and examples of the products and how they are used to solve real-world problems
About the Author
Andrew Chisholm, (London, UK) is an independent consultant providing derivatives and capital markets training services to the investment banking industry. He has taught finance for major investment banks and portfolio management firms around the world since 1986 and was formerly head of training for JP Morgan in Europe. He was co-founder of Chisholm Roth and Company Ltd., a specialist in computer simulation-based training for traders, investors and risk managers in the capital markets industry. Andrew was educated at Edinburgh and Oxford Universities and Dartmouth College in the US and also has an MBA from the Warwick University Business School.