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Introduction to Derivatives and Risk Management

By Don M. Chance, Robert Brooks

10th Edition © 2016
Discipline:Finance
Course:Investments
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Coupling real business examples with minimal technical mathematics, market-leading INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 10e 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 as well as a balanced introduction to pricing, trading, and strategy. The financial information throughout the Tenth Edition reflects the most recent changes in the derivatives market--one of the most volatile sectors in the financial world. New "Taking Risk in Life" features illustrate the application of risk management in real-world financial decisions.The Tenth Edition also includes Cengage Learning Testing Powered by Cognero, a flexible, online testing resource that gives instructors limitless testing possibilities.

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AboutTable of contentsResourcesPricing & formatsRelated products

About this product

Coupling real business examples with minimal technical mathematics, market-leading INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 10e 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 as well as a balanced introduction to pricing, trading, and strategy. The financial information throughout the Tenth Edition reflects the most recent changes in the derivatives market--one of the most volatile sectors in the financial world. New "Taking Risk in Life" features illustrate the application of risk management in real-world financial decisions.The Tenth Edition also includes Cengage Learning Testing Powered by Cognero, a flexible, online testing resource that gives instructors limitless testing possibilities.

UP-TO-THE-MINUTE ARTICLES AND READINGS REFLECT EMERGING ISSUES AND CHANGES: The latest updates, articles and suggested readings at the end of each chapter keep you and your students at the forefront of the many challenges and changes throughout the market. Internet-related information and the book's companion website further ensure the material you present is the most current.

UP-TO-THE-MINUTE ARTICLES AND READINGS REFLECT EMERGING ISSUES AND CHANGES: The latest updates, articles and suggested readings at the end of each chapter keep you and your students at the forefront of the many challenges and changes throughout the market. Internet-related information and the book's companion website further ensure the material you present is the most current.

"MAKING THE CONNECTION" BOXES DEMONSTRATE FINANCIAL DECISION-MAKING IN ACTION: Now you can give your students insights into how chapter content applies directly to real-world financial decision-making. Engaging "Making the Connection" boxes highlight examples from real businesses and actual market conditions to emphasize the practicality of chapter theories.

"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 allow students to check their own comprehension.

Table of contents

Chapters

Cover Page
Title Page
Copyright Page
Preface
Highlights of the Tenth Edition
Student Resources
Additional Course Tools
Chapter 1. Introduction*Preview this chapter
Chapter 2. Structure of Derivatives Markets
Part I. Options
Part II. Forwards, Futures, and Swaps
Part III. Advanced Topics
Appendix B. References
Appendix C. List of Symbols
Appendix D. List of Important Formulas
Show more

Chapter 1. IntroductionPreview this chapter ↗

1-1. Derivative Markets and Instruments
Preview this section ↗
1-1a. Derivatives Markets ↗
1-1b. Options ↗
1-1c. Forward Contracts ↗
1-1d. Futures Contracts ↗
1-1e. Swaps ↗
1-2. The Underlying Asset ↗
1-3. Important Concepts in Financial and Derivative Markets
Preview this section ↗
1-3a. Presuppositions for Financial Markets ↗
1-3b. Risk Preference ↗
1-3c. Short Selling ↗
1-3d. Repurchase Agreements ↗
1-3e. Return and Risk ↗
1-3f. Market Efficiency and Theoretical Fair Value ↗
1-4. Fundamental Linkages between Spot and Derivative Markets
Preview this section ↗
1-4a. Arbitrage and The Law of One Price ↗
1-4b. The Storage Mechanism: Spreading Consumption across Time ↗
1-4c. Delivery and Settlement ↗
1-5. Role of Derivative Markets
Preview this section ↗
1-5a. Risk Management ↗
1-5b. Price Discovery ↗
1-5c. Operational Advantages ↗
1-5d. Market Efficiency ↗
1-6. Criticisms of Derivative Markets ↗
1-7. Misuses of Derivatives ↗
1-8. Derivatives and Ethics ↗
1-9. Derivatives and Your Career ↗
1-10. Sources of Information on Derivatives ↗
1-11. Book Overview
Preview this section ↗
1-11a. Organization of the Book ↗
1-11b. Key Features of the Book ↗
1-11c. Specific New Features of the Tenth Edition ↗
1-11d. Use of the Book ↗
Summary ↗
Key Terms ↗
Further Reading ↗
Concept Checks ↗
Questions and Problems ↗
Show more

Resources

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ISBN-13: 9780357701744
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