Derivatives markets

Abstract

Part one: Insurance, hedging, and simple strategies: An introduction to forwards and options; Insurance, collars, and other strategies; Introduction to risk management -- Part two: Forwards, futures, and swaps: Financial forwards and futures; Commodity forwards and futures; Interest rate forwards and futures; Swaps -- Part three: Options: Parity and other option relationships; Binomial option pricing; The black-scholes formula; Market-making and delta-hedging; Exotic options I -- Part four: Financial engineering and applications: Financial engineering and security design; Corporate applications; Real options -- Part five: Advanced pricing theory and applications: The longnormal distributions; Monte Carlo valuation; The black-scholes-merton equation; Risk-neutral and martingale pricing; Exotic options II; Volatility; Interest rate and bond derivatives; Value at risk; credit risk.