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Coupling real business examples with minimal technical mathematics, market-leading INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT (WITH STOCK-TRAK COUPON), 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. Available with each new text, Stock-Trak software enables students to put what they learn into action with hands-on practice managing a hypothetical portfolio. The Tenth Edition also includes Cengage Learning Testing Powered by Cognero, a flexible, online testing resource that gives instructors limitless testing possibilities.
- NEW! "Taking Risk in Life" features appear in selected chapters and present real-life situations illustrating the application of risk management in financial decisions.
- REVISED! The Tenth Edition has been thoroughly updated throughout to reflect numerous recent changes in the options markets and futures markets. It includes a new and completely revised chapter 2: Derivatives Markets.
- NEW! Each new edition comes with a $7-off coupon for a Stock-Trak Gold Account for students. Stock-Trak gives students hands-on experience managing a portfolio--with none of the risk. Students are given $500,000 of hypothetical money in a Stock-Trak brokerage account, up to 16 weeks of trading, up to 200 trades, and numerous features to help them track their successes throughout the course.
- NEW! Providing the ultimate testing resource, Cengage Learning Testing Powered by Cognero is a flexible, online system that allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions; create various test versions in an instant; and deliver tests from your LMS, your classroom, or wherever you want. The Cognero Test Bank content is tagged according to Tier I (Business Program Interdisciplinary Learning Outcomes) and Tier II (Finance-specific) standards, topic, Bloom's Taxonomy, and difficulty level.
- PROVEN END-OF-CHAPTER PRACTICE AND NEW TEST BANK PROBLEMS IMPROVE UNDERSTANDING: A variety of end-of-chapter problems offer focused opportunities for students to apply the concepts they've learned. New Test Bank problems provide additional choices to easily check your students' comprehension.
- 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.
- EXTENSIVE ILLUSTRATIONS CLARIFY CONCEPTS: A wealth of captivating, useful illustrations--including more than 100 figures and more than 100 tables--further expand upon and reinforce the concepts presented in the text. Figures 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 the topic of financial derivatives is unavoidably a technical subject, the authors do not emphasize calculus that is not necessary for learning material at this level. The text 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.
2. 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.
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.
Appendix A: List of Important Formulas.
Appendix B: References.
Appendix C: Solutions to Concepts.
Cengage provides a range of supplements that are updated in coordination with the main title selection. For more information about these supplements, contact your Learning Consultant.
Put all the instruction tools you need at your fingertips. The website includes Microsoft® Word versions of the Solutions Review Manual and Test Bank, PowerPoint® lecture slides, and access to the Cognero Test Bank. 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. The Test Bank questions help you evaluate your students’ understanding of text concepts. You’ll find a variety of more than 300 questions within this proven Test Bank. The companion site also has useful Web links, author-provided spreadsheets, errata updates, and Technical Notes that clearly show students how numerous formulas and measures of various kinds of risk are derived.
Cengage Learning Testing, powered by Cognero Instant Access
Accessible from the instructor companion site, Cengage Learning Testing Powered by Cognero is a flexible, online system that allows you to author, edit, and manage test bank content from multiple Cengage Learning solutions; create multiple test versions in an instant; and deliver tests from your LMS, your classroom, or wherever you want. The Cognero Test Bank content is tagged according to Tier I (Business Program Interdisciplinary Learning Outcomes) and Tier II (Finance-specific) standards, topic, Bloom's Taxonomy, and difficulty level.