Limit search to available items
Book Cover
E-book
Author Dempsey, Michael, 1951- author.

Title Financial risk management and derivative instruments / Michael Dempsey
Published Milton Park, Abingdon, Oxon ; New York, NY : Routledge, Taylor & Francis Group, 2021

Copies

Description 1 online resource
Series Routledge Advanced Texts in Economics and Finance Ser
Routledge Advanced Texts in Economics and Finance Ser
Contents Cover -- Half Title -- Series Page -- Title Page -- Copyright Page -- Dedication -- Table of Contents -- List of figures -- List of tables -- Illustrative examples -- About the author -- Introduction -- PART A: Markets and uncertainty -- 1. Stock market risk: Fundamentals and behaviour -- 1.1 Introduction -- 1.2 The riskiness of stock markets -- 1.3 The concept of fundamental value -- 1.4 The concept of a required rate of return -- 1.5 Time for reflection: What has been revealed? -- 2. Financial leverage and risk -- 2.1 Introduction -- 2.2 Financial leverage -- 2.3 Modigliani and Miller propositions -- 2.4 Debt, firm profitability, and valuation -- 2.5 Debt, the markets and the economy: Hyman Minsky -- 2.6 Debt and the global financial crisis -- 2.7 Time for reflection: What has been revealed? -- 3. Bond market risk: Interest Rates -- 3.1 Introduction -- 3.2 Implications of interest rates for bonds -- 3.3 The duration of bonds and sensitivity to interest rates -- 3.4 Interest rates, inflation and economic stimulation -- 3.5 Interrogating bonds: expectations for interest rates -- 3.6 Time for reflection: What has been revealed? -- 4. The nature of growth -- 4.1 Introduction -- 4.2 The normal distribution -- 4.3 Co-variance, correlation and expected return and variance for a portfolio of assets -- 4.4 Continuously-compounding growth -- 4.5 Market predictions allowing normally distributed outcomes -- 4.6 Continuously compounding growth rates over many periods -- 4.7 Time for reflection: What has been revealed? -- PART B: Derivative instruments and financial engineering -- 5. Interest rate futures (forwards) -- 5.1 Introduction -- 5.2 Interest rate swaps -- 5.3 Banks and the incentive to facilitate interest rate swaps -- 5.4 Hedging interest rates with an "over the counter" forward rate agreement (FRA)
5.5 Hedging and speculation with Treasury bond futures -- 5.6 Hedging and speculation with interest rate futures -- 5.7 Time for reflection: What has been revealed? -- 6. Futures contracts: Hedging/speculating on currency risk -- 6.1 Introduction -- 6.2 Futures (forward contracts) -- 6.3 Institutionalized futures markets -- 6.4 Futures and leveraged speculation -- 6.5 The futures price in relation to the current spot price -- 6.6 Hedging currency risk -- 6.7 Hedging and "regret" -- 6.8 Time for reflection: What has been revealed? -- 7. Options contracts: Hedging/speculating on currency risk -- 7.1 Introduction -- 7.2 The nature of options trading -- 7.3 Options and foreign currencies -- 7.4 Price discovery: intrinsic and time value -- 7.5 Speculating on foreign exchange -- 7.6 Hedging corporate foreign exchange exposure -- 7.7 Time for reflection: What has been revealed? -- 8. The Black-Scholes model -- 8.1 Introduction -- 8.2 The principle of risk neutrality -- 8.3 Derivation of the Black-Scholes formula -- 8.4 Put-Call parity -- 8.5 The Black-Scholes formula applied to either (i) an index with a continuous dividend yield or (ii) a currency with an interest rate -- 8.6 The Black-Scholes model in practice -- 8.7 Time for reflection: What has been revealed? -- 9. Trading index futures -- 9.1 Introduction -- 9.2 Futures trading platforms -- 9.3 Equity Index Basis -- 9.4 Trading Strategies -- 9.5 Time for reflection: What has been revealed? -- 10. Option strategies -- 10.1 Introduction -- 10.2 The options markets -- 10.3 Changing prices of options (inputs to the Black-Scholes model) -- 10.4 Options trading strategies -- 10.5 Time for reflection: What has been revealed? -- 11. Option pricing: The Greeks -- 11.1 Introduction -- 11.2 The Greeks -- 11.3 The Greeks in combination -- 11.4 Time for reflection: What has been revealed?
12. Derivative instruments and the global financial crisis (2007-08) -- 13. Solutions -- Chapter 1: Stock market risk: Fundamentals and behaviour -- Chapter 2: Financial leverage and risk -- Chapter 3: Bond market risk: Interest rates -- Chapter 4: The nature of growth -- Chapter 5: Interest rate futures (forwards) -- Chapter 6: Futures contracts: Hedging/speculating on currency risk -- Chapter 7: Options contracts: Hedging/speculating on currency risk -- Chapter 8: The Black-Scholes model -- Chapter 9: Trading index futures -- Chapter 10: Option strategies -- Chapter 11: Option pricing: The Greeks -- Chapter 12: Derivative instruments and the global financial crisis (2007-08) -- Index
Summary "Financial Risk Management and Derivative Instruments is an accessible, concise textbook offering a solid introduction to the essential principles of risk management and derivatives. Structured in two parts, the book first looks at markets and uncertainty, examining risk in the stock market and the bond market, leveraging and growth. It then moves on to topics in derivative instruments and financial management, including futures, options and the Black-Scholes model. The text sets the topics in their global context, referencing financial shocks such as Brexit and the Covid-19 pandemic. On top of the accessible writing style, students are supported through a range of pedagogical features in the text, ranging from key insights boxes, illustrative examples boxes and end-of-chapter tutorials to check understanding. The book is also supplemented by a set of PowerPoint slides. This textbook will be the ideal companion for introductory undergraduate courses on derivatives, financial instruments and financial risk management, as part of programmes in investment and corporate finance. It will also be a useful text for masters level and MBA finance courses"-- Provided by publisher
Bibliography Includes bibliographical references and index
Notes Description based on print version record
Subject Financial risk management.
Financial futures.
Derivative securities.
BUSINESS & ECONOMICS / Finance
Derivative securities
Financial futures
Financial risk management
Form Electronic book
LC no. 2020053242
ISBN 9781003132240
1003132243
1000386155
9781000386158
9781000386172
1000386171