Higher Education

Introduction to Derivatives and Risk Management, 9th Edition

  • includes Stock-Trak Coupon
  • Don M. Chance Louisiana State University
  • Robert Brooks University of Alabama, Tuscaloosa
  • ISBN-10: 1133190197  |  ISBN-13: 9781133190196
  • 688 Pages
  • Previous Editions: 2010, 2007, 2004
  • © 2013 | Published
  • College Bookstore Wholesale Price = $309.00
  • Newer Edition Available
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About

Overview

This leading text gives students a solid understanding of financial derivatives and their use in managing the risks of financial decisions. AN INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 9E provides a blend of institutional material, theory, and practical applications. The latest financial information throughout this edition and timely updates on the text's website ensure your course reflects the most recent changes in one of the most volatile sectors of today's financial world. You'll find detailed coverage of options, futures, forwards, swaps, and risk management as well as a balanced introduction to pricing, trading, and strategy. A variety of practical end-of-chapter applications, memorable examples from real businesses, and minimal use of technical mathematics keep the text accessible and engaging for students. Stock-Trak software, available with each new text, provides additional value and practical application opportunities for your students. Approximately 25 PowerPoint slides per chapter highlight tables and figures with useful hyperlinks that allow you to jump to the table or figure and back again without breaking the flow of your lecture. The online Solutions Review Manual gives your students a useful online review tool, providing answers to the end-of-chapter problems, as well as the step-by-step solutions, so students can check their own work and determine exactly where they may have made errors. New Test Bank questions help you better evaluate your students' understanding of the text's concepts. You'll find a variety of more than 300 questions within this proven Test Bank.

Features and Benefits

  • MOST RECENT ARTICLES AND READINGS REFLECT CHANGES IN TODAY'S FINANCIAL BUSINESS WORLD: The latest updates, articles and suggested readings at the end of each chapter keep your course abreast of the many challenges and changes throughout today's financial crises. Internet-related information and the book's companion web site further ensure the material you present is the most current.
  • EXTENSIVE, ENGAGING ILLUSTRATIONS CLARIFY CONCEPTS: A wealth of captivating, useful illustrations, including more than 100 figures and more than 100 tables throughout this edition, further expand upon and reinforce the concepts presented in the text. Figures in the text build on each other to illustrate links between stocks, risk-free bonds, futures, options, forwards, Black-Scholes call/put pricing, and similar concepts.
  • MINIMAL USE OF TECHNICAL MATHEMATICS KEEPS BOOK ACCESSIBLE FOR STUDENTS: While financial derivatives is unavoidably a technical subject, the authors do not emphasize calculus that is not necessary for learning material at this level. This edition uses a flexible mathematical approach that places more complex material in end-of-chapter appendices -- all while keeping the text challenging and applicable to today's needs.
  • PROVEN END-OF-CHAPTER PRACTICE AND NEW TEST BANK PROBLEMS CHALLENGE STUDENTS' UNDERSTANDING: A variety of end-of-chapter problems in this book provide focused opportunities for students to apply the concepts they've learned. New Test Bank problems provide additional choices to easily check your students' comprehension.
  • ENGAGING QUOTES BEGIN EACH CHAPTER AND DIRECT THE READER'S ATTENTION TO THE CONTENT THAT FOLLOWS: This edition captures your students' attention at the beginning of the chapter as intriguing quotes turn the reader's focus to the useful presentation of theory and applications that follow.
  • UPDATED "MAKING THE CONNECTION" DEMONSTRATES THE MOST RECENT CHANGES IN THE FIELD TODAY: You can clearly show your students the power of derivatives at work in today's financial industry with fresh examples and explanations within "Derivatives Tools" features throughout this edition.
  • FRESH, DYNAMIC POWERPOINT SLIDES BRING LECTURES TO LIFE: Now you can clarify principles for your students and keep them engaged with dynamic, updated PowerPoint Presentation slides that are easy to use and simple to customize to your unique course needs.

Table of Contents

PART I Options.
1. Introduction.
2. Structure of Options Markets.
3. Principles of Option 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. The Structure of Forward and Futures Markets.
9. Principles of Pricing Forwards, Futures, and Options on Futures.
10. Futures Arbitrage Strategies.
11. Forward and Futures Hedging, Spread, and Target Strategies.
12. Swaps.
PART III Advanced Topics.
13. Interest Rate Forwards and Options.
14. Advanced Derivatives and Strategies.
15. Financial Risk Management Techniques and Applications.
16. Managing Risk in an Organization.
Appendix A: List of Formulas.
Appendix B: References.
Appendix C: Solutions to Concept Checks.
Glossary.
Index.

What's New

  • NEW "MAKING THE CONNECTION" BOXES DEMONSTRATE FINANCIAL DECISION-MAKING IN ACTION: Now you can give your students insights into how the content applies directly to financial decision-making in today's business world. Engaging "Making the Connection" boxes highlight examples from real businesses and actual market conditions to emphasize the practicality of chapter theories.
  • NEW "CONCEPT CHECKS" ENSURE STUDENT COMPREHENSION: This new set of "Concept Checks" questions at the end of each chapter assists the students in clarifying and ensuring that they understand the basic materials covered in the text. Solutions to these questions at the end of the book allow students to check their own comprehension.

Alternate Formats

Choose the format that best fits your student's budget and course goals

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  • Book Only

    ISBN-10: 1133190200 | ISBN-13: 9781133190202

    List Price = $410.95  | College Bookstore Wholesale Price = $309.00

Supplements

All supplements have been updated in coordination with the main title. Select the main title's "About" tab, then select "What's New" for updates specific to title's edition.

For more information about these supplements, or to obtain them, contact your Learning Consultant.

Instructor Supplements

Introduction to Derivatives and Risk Management (Book Only)  (ISBN-10: 1133190200 | ISBN-13: 9781133190202)

This leading text gives students a solid understanding of financial derivatives and their use in managing the risks of financial decisions. AN INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 9E provides a blend of institutional material, theory, and practical applications. The latest financial information throughout this edition and timely updates on the text's website ensure your course reflects the most recent changes in one of the most volatile sectors of today's financial world. You'll find detailed coverage of options, futures, forwards, swaps, and risk management as well as a balanced introduction to pricing, trading, and strategy. A variety of practical end-of-chapter applications, memorable examples from real businesses, and minimal use of technical mathematics keep the text accessible and engaging for students. Stock-Trak software, available with each new text, provides additional value and practical application opportunities for your students. Approximately 25 PowerPoint slides per chapter highlight tables and figures with useful hyperlinks that allow you to jump to the table or figure and back again without breaking the flow of your lecture. The online Solutions Review Manual gives your students a useful online review tool, providing answers to the end-of-chapter problems, as well as the step-by-step solutions, so students can check their own work and determine exactly where they may have made errors. New Test Bank questions help you better evaluate your students' understanding of the text's concepts. You'll find a variety of more than 300 questions within this proven Test Bank.

List Price = $410.95  | College Bookstore Wholesale Price = $309.00

Student Supplements

Introduction to Derivatives and Risk Management (Book Only)  (ISBN-10: 1133190200 | ISBN-13: 9781133190202)

Gain a solid understanding of financial derivatives and their use in managing the risks of financial decisions with this leading text. AN INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 9E provides an outstanding blend of institutional material, theory, and practical applications. The latest financial information throughout this edition and timely Internet updates on the text's website reflect the most recent changes in this volatile, fast-changing sector of the financial world. You'll find detailed coverage of options, futures, forwards, swaps, and risk management as well as a balanced introduction to pricing, trading, and strategy. A variety of practical end-of-chapter applications, memorable examples from real businesses, and minimal use of technical mathematics keep the text's presentation accessible. Numerous illustrations further clarify the connections between topics, such as puts, calls, stocks, risk-free bonds, futures, options, forwards, and Black-Scholes call/put pricing. Stock-Trak software, available with each new text, gives you an additional value and opportunity for practice. You can count on this exceptional text to provide the thorough introduction to derivatives and risk management that you need for success in financial business today.

List Price = $410.95  | College Bookstore Wholesale Price = $309.00

Meet the Author

Author Bio

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. He previously held the William H. Wright, Jr. Endowed Chair for Financial Services at LSU, and the First Union Professorship in Financial Risk Management at Virginia Tech. Prior to his academic career, he worked for a large southeastern bank. He has been a visiting scholar at the University of Adelaide (Australia), the University of Strathclyde (Scotland), the University of North Carolina at Chapel Hill, the Korea Advanced Institute for Science and Technology, and the University of Missouri at Kansas City. Dr. Chance is widely published in derivatives and risk management, as well as other areas of finance. He has published numerous articles in academic and practitioner journals and is the author of ESSAYS IN DERIVATIVES: RISK TRANSFER TOOLS AND TOPICS MADE EASY, 2e, and ANALYSIS OF DERIVATIVES FOR THE CFA PROGRAM. He has extensive experience conducting professional training programs, and his consulting practice (Omega Risk Advisors, LLC) serves companies, organizations, and law firms. Dr. Chance is also involved in the development and writing of the derivatives curriculum in the CFA program.

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). The author of numerous articles appearing in both academic and practitioner journals, Dr. Brooks has been quoted in THE WALL STREET JOURNAL, THE NEW YORK TIMES, BLOOMBERG NEWS, and THE BOND BUYER, as well as regional newspapers. He is the author of several books, including BUILDING FINANCIAL RISK MANAGEMENT APPLICATIONS WITH C++. Dr. Brooks has testified in a subcommittee hearing of the U.S. House of Representatives in Washington, D.C., as well as in a field hearing of the Securities and Exchange Commission in Birmingham, Alabama. He also has consulted with money managers, major public utilities, energy companies, auditing firms, corporations, investment bankers, elected municipal officials, and commercial bankers. In addition, Dr. Brooks conducts professional development seminars on various aspects of finance. He earned his B.S. in finance from Florida State University and his Ph.D. in finance from the University of Florida.