Product Description
The book is a step-by-step guide to derivative products. By distilling the complex mathematics and theory that underlie the subject, Chisholm explains derivative products in straightforward terms, focusing on applications and intuitive explanations wherever possible. Case studies and examples of how the products are used to solve real-world problems, as well as an extensive glossary and material on the latest derivative products make this book a must have for anyone working with derivative products.
From the Inside Flap
Derivatives Demystified follows a sequence that is designed to show that, although there are many applications of derivatives, there are only a small number of basic building blocks, namely forwards and futures, swaps and options. The book shows how each building block is applied to different markets and to the solution of various risk management and trading problems.
Thoroughly up–to–date, the author includes explanations of later–generation products such as barrier options, cliquets and choosers. There are also sections on credit default and equity swaps and there are full chapters devoted to convertible and exchangeable bonds and to structured products such as equity–linked notes and bonds issued through synthetic securitization. The final chapter has information on the financial calculations that underpin the derivatives market, for those who wish to explore this topic.
