Synopses & Reviews
New ways to profit in the post-credit-crisis market! Trading complex formulas and intricate theories for clear descriptions and real-world examples, the second edition of All About Derivatives introduces you to the vast array of derivatives in today's market. It covers all aspects of derivative contracts, explains techniques for pricing and trading them, and shows how to use each to hedge risk or increase profits. Youll learn everything there is to know about:
- Contracts, including forwards, futures, swaps, options, and credit derivatives
- Key terms, such as volatility, arbitrage, and the Greeks
- Key mechanics, like storage, settlement, valuation, and payoff
- Pricing methods and mathematics for determining fair value
- Hedging strategies for different types of risk
Plus, you get brand-new chapters on high-frequency trading and the role derivatives played in the 2008 credit crisis
Synopsis
EVERYTHING YOU NEED TO KNOW ABOUT DERIVATIVES
All About Derivatives, Second Edition, presents the complex subject of financial derivatives with a clarity and coherence you won't find in other books. Using real-world examples and simple language, it lucidly illustrates what derivatives are and why they are so powerful. This second edition of All About Derivatives provides a rock-solid foundation on: The most common contracts available to you in today's market Key concepts such as cost of carry, settlement, valuation, and payoff Proven methods for establishing fair value How leverage can work for you--and against you The various derivative contracts traded today, including forwards, futures, swaps, and options Pricing methods and mathematics for determining fair value Hedging strategies for managing and reducing different types of risk
INCLUDES A BRAND-NEW CHAPTER ON THE ROLE DERIVATIVES PLAYED IN THE 2008 FINANCIAL MELTDOWN
About the Author
Michael Durbin is a writer, educator, and software engineer specializing in high-frequency trading of financial derivatives. He is an adjunct professor at Duke University's Fuqua School of Business and the University of North Carolina's Kenan-Flagler Business School.