Published by Pearson (August 27, 2013) © 2014

Robert McDonald
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    ISBN-13: 9781292034485R365

    Derivatives Markets ,3rd edition

    Language: English

    For courses in options, futures, and derivatives.

    To be financially literate in today’s market, business students must have a solid understanding of derivatives concepts and instruments and the uses of those instruments in corporations.  The 3rd Edition has an accessible mathematical presentation, and more importantly, helps students gain intuition by linking theories and concepts together with an engaging narrative that emphasises the core economic principles underlying the pricing and uses of derivatives.


    The 3rd edition has been updated to include new data and examples throughout.

     

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    • Chapter 1 Introduction to Derivatives
    • PART ONE   INSURANCE, HEDGING, AND SIMPLE STRATEGIES
    • Chapter 2 An Introduction to Forwards and Options
    • Chapter 3 Insurance, Collars, and Other Strategies
    • Chapter 4 Introduction to Risk Management
    • PART TWO   FORWARDS, FUTURES, AND SWAPS
    • Chapter 5 Financial Forwards and Futures
    • Chapter 6 Commodity Forwards and Futures
    • Chapter 7 Interest Rate Forwards and Futures
    • Chapter 8 Swaps
    • PART THREE   OPTIONS
    • Chapter 9 Parity and Other Option Relationships
    • Chapter 10   Binomial Option Pricing: Basic Concepts
    • Chapter 11   Binomial Option Pricing: Selected Topics
    • Chapter 12   The Black-Scholes Formula
    • Chapter 13   Market-Making and Delta-Hedging
    • Chapter 14   Exotic Options: I
    • PART FOUR   FINANCIAL ENGINEERING AND APPLICATIONS
    • Chapter 15   Financial Engineering and Security Design
    • Chapter 16   Corporate Applications
    • Chapter 17   Real Options
    • PART FIVE   ADVANCED PRICING THEORY AND APPLICATIONS
    • Chapter 18   The Lognormal Distribution
    • Chapter 19   Monte Carlo Valuation
    • Chapter 20   Brownian Motion and Ito's Lemma
    • Chapter 21   The Black-Scholes-Merton Equation
    • Chapter 22   Risk-Neutral and Martingale Pricing
    • Chapter 23   Exotic Options: II
    • Chapter 24   Volatility
    • Chapter 25   Interest Rate and Bond Derivatives
    • Chapter 26   Value at Risk
    • Chapter 27   Credit Risk
    • Appendixes
    • App. A   The Greek Alphabet
    • App. B   Continuous Compounding
    • App. C   Jensen's Inequality
    • App. D   An Introduction to Visual Basic for Applications
    • Glossary
    • References
    • Index