Derivatives

This book provides a comprehensive but concise treatment of the subject of derivatives. It focuses on making essential concepts accessible to a wider audience. The book eschews complicated mathematics and high school level mathematics is sufficient to understand it. It describes and explains various derivative instruments, their use and pricing, and the functioning of derivative markets. It uses a large number of examples to elucidate concepts and illustrate their real-life application. A distinguishing feature of the book is that it goes beyond the narrow perspective of derivative traders and investors and takes a broader approach which enhances its appeal to a range of readers. This book will be useful for students in the fields of economics, econometrics, derivatives, and finance and financial professionals, bankers and investors. Contents 8 List of Tables, Figures and Boxes 10 Foreword 14 Preface to the First Edition 16 Preface to the Second Edition 18 Acknowledgements 20 Part – I Introduction 21 1. Introduction 23 2. Some Basic Concepts 41 Part – II Forwards and Futures 55 3. Futures and Forwards 57 4. Futures Trading: Pricing and Hedging 71 5. Interest Rate Futures 108 6. Currency Futures 133 7. Futures on Equities 140 Part – III Swaps 153 8. Swaps – Part I: Interest Rate and Currency Swaps 155 9. Swaps – Part II: Other Swaps 163 Part – IV Options 173 10. Options – I: Introduction to Options 175 11. Options – II: Pricing of Options 199 12. Options – III: Equity Options Strategies 214 13. Advanced Options Strategies 224 14. Options – IV: Real and Other Options 245 Part –V Other Derivatives and Derivative-like Instruments 253 15. Other Derivatives 255 16. Exchange Traded Funds and Structured Products 261 Part –VI Accounting, Taxation and Regulatory Framework 275 17. Accounting and Taxation 277 18. Infrastructure for Derivatives Trading 302 19. Regulation of Derivatives Trading: An Introduction 313 Part –VII Portfolio Management and Management of Derivative Risks 319 20. Portfolio Management and Derivatives 321 21. Management of Derivative Risks 327 Bibliography 338 Index 341 Provides a comprehensive, concise treatment of the subject of derivatives and focuses on making essential concepts accessible to a wider audience. Describes and explains various derivative instruments, their use and pricing, and the functioning of derivative markets. Uses examples to elucidate concepts and illustrate their real-life application. "Provides a comprehensive but concise treatment of the subject of Derivatives"-- Provided by publisher