Robert E.Whaley – Derivates
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Robert Whaley has more than twenty-five years of experience in the world of finance, and with this book he shares his hard-won knowledge in the field of derivatives with you. Divided into ten information-packed parts,
Derivativesshows you how this financial tool can be used in practice to create risk management, valuation, and investment solutions that are appropriate for a variety of market situations.
From the Inside Flap
Derivatives markets continue to grow at a rapid rate, with thousands of new products or product variations being introduced every year. In order to make sense of this dynamic environment you need a firm understanding of derivative contract valuation and risk management as well as the structure of the markets within which they trade.
Author Robert Whaley has more than twenty-five years of experience in the world of finance, and with this book he shares his hard-won knowledge in the field of derivatives with you. Divided into ten information-packed parts, Derivatives will show you how this financial tool can be used in practice to create risk management, valuation, and investment solutions that are appropriate for a variety of market situations.
- Part One provides a broad overview of derivative contracts and the markets within which they trade
- Part Two reviews the basic principles of security valuation and helps prepare you for the upcoming discussion of derivative contract valuation and risk measurement
- Part Three focuses on the valuation of forward contracts and the risk management strategies associated with them
- Part Four focuses on the valuation of option contracts and the risk management strategies associated with them
With a general valuation/risk measurement framework in hand, you’ll then be introduced to derivative contracts in specific asset categories. The remaining parts (5–9) of this comprehensive guide are arranged by the nature of the asset underlying the derivatives contract—stocks are discussed first, then stock indexes, currencies, interest rates or bonds, and finally, commodities. In each part, Whaley provides a flavor of the history of each derivatives market. He also examines any contract idiosyncrasies that may affect valuation principles and explores specific risk management strategies/practices as they apply to the markets for particular asset categories.
Derivatives can be used to manage the different types of risks faced by individuals, corporations, and governments. But to effectively implement them takes discipline. Filled with in-depth insights, practical advice, and a companion website that features OPTVAL Excel add-ins and spreadsheets, Derivatives offers valuable guidance on applying this key financial tool to a variety of real-world situations.
From the Back Cover
Praise for Derivatives
“This book is the culmination of twenty years of experience teaching and consulting in the area of futures and options. You will find in it the combination of recent theoretical developments and Bob’s intimate practical knowledge of derivative markets.”
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Bernard Dumas, Rothschild Professor of Banking, Professor of Finance, INSEAD
“This is the definitive work on derivatives. It is a comprehensive treatment of the theory, practice, and institutional detail of derivatives; excellent both as a learning tool and as a reference work. Rare for such a work, it is also fun to read.”
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T. Eric Kilcollin, Managing Member, Sanborn Kilcollin Partners, LLC former president and CEO, Chicago Mercantile Exchange
“A definitive book by one of the great teachers of derivatives and risk management. It is thoughtful and comprehensive, yet accessible to both students and practitioners of finance.
Derivatives fills a glaring lacuna and should be required reading for those serious about derivatives and risk management.”
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Campbell R. Harvey, J. Paul Sticht Professor of International Business Fuqua School of Business, Duke University
“An all-encompassing presentation of the world of derivatives, Bob’s book promises to illuminate the subject for the theoretician and practitioner alike. Few other books on the subject are as comprehensive—and as comprehensible. It clearly demonstrates why he is widely recognized as the definitive expert on derivative instruments.”
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Joe Levin, Vice President, Research and Product Development Chicago Board Options Exchange
“Bob Whaley’s new derivatives book is accessible and innovative. Students, professors, and practitioners will benefit from Bob’s concise, well-organized, and logical presentation. The book’s many illustrative numeric examples support and extend the reader’s understanding of complex issues.”
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Dwight Grant, Professor of Global Finance, Thunderbird The Garvin School of International Management