Financial Engineering

Author: Cuthbertson et al
Publisher:
Publish Date: 2004-07-01
Features: This book provides a detailed discussion of futures, "vanilla" options, swaps, and the use of exotic derivatives and interest rate options in speculation and hedging. In terms of option pricing, in addition to explaining the solutions using continuous-time mathematics, it also introduces numerical methods such as the Binomial Option Pricing Model (BOPM), Monte Carlo simulation, and finite difference methods. The theory of real options and its application in investment valuation and the pricing of biotech and internet companies have practical significance. This book is designed for derivative and risk management courses and is suitable for financial MBA, Master of Finance, or undergraduate students. It can be studied independently or used as a follow-up course to the author's other book, "Investments—Futures and Derivatives Markets." The book primarily introduces the practical application of financial derivatives in speculation, hedging, and arbitrage, as well as methods for evaluating market changes and the credit risk of global financial institutions. The book is logically structured, clearly organized, and flexible in format, making it suitable for undergraduate and graduate students at universities and colleges, as well as professionals in the financial sector.