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Understanding Derivatives: Options, Futures, Swaps, MBSs, CDOs and Others


Strong, RA and Jeyasreedharan, N, Understanding Derivatives: Options, Futures, Swaps, MBSs, CDOs and Others, Tilde Publishing and Distribution, Prahan, Vic, pp. 396. ISBN 978-0-7346-1256-4 (2017) [Revision/New Edition]

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Although most universities now have an undergraduate derivatives course, many instructors were, and still are, in desperate need of a book with coverage that is both adequate and accessible - as most textbooks on financial derivatives are either too basic or too advanced for undergraduate students. Understanding Derivatives: Options, Futures, Swaps, MBSs, CDOs and Others, First Edition, provides a broad introduction to the options, futures, swaps and interest rate options markets, and also provides the intuition needed to understand the fundamental mathematics of pricing. In addition, coverage of innovative derivative products such as exotic options, weather derivatives, catastrophe futures and volatility spreads has not been neglected. We cover these concepts - without delving into their pricing or valuation - and conclude with a contemporary issues chapter that discusses the latest developments in the field. This book presents a good balance of theory and practice. It is important for a student of the derivatives market to understand how arbitrage arguments lead to rational option pricing, why the cost of carry is crucial to futures pricing, and how a swap dealer determines the fixed rate on an interest rate swap. These are enjoyable topics to learn about, and motivated finance students can find them fascinating. At the same time, it is equally important to understand how the end-user makes intelligent use of these products as risk management tools. Additionally, a variety of application examples are included from the perspective of both the speculator and the hedger.

Item Details

Item Type:Revision/New Edition
Keywords:derivatives, financial derivatives, theory, practice
Research Division:Economics
Research Group:Applied economics
Research Field:Financial economics
Objective Division:Expanding Knowledge
Objective Group:Expanding knowledge
Objective Field:Expanding knowledge in economics
UTAS Author:Jeyasreedharan, N (Dr Nagaratnam Jeyasreedharan)
ID Code:123998
Year Published:2017
Deposited By:Economics and Finance
Deposited On:2018-02-06
Last Modified:2018-02-06

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