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Derivatives Markets, 3rd edition

  • Robert L. McDonald

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Overview

Derivatives Markets gives you a solid understanding of derivatives concepts and instruments, and how those instruments are used in organizations. The text links theories and concepts with examples and applications, helping you to become financially literate in today's market.

Published by Pearson (August 1st 2021) - Copyright © 2012

ISBN-13: 9780137612864

Subject: Finance

Category: Investments

Table of contents

Brief Contents

  • Preface
  • 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

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