Intermediate Financial Engineering

Author: Zhou Lohua
Publisher:
Publish Date: 2005-05-01
Features:
In the past five years, finance seems to have been pushed to the edge of the known world. All our efforts have helped us develop various new financial instruments, hedging the spatial positions of various assets. What remains, however, is the time that seems forever unhedgeable—it is this time concept that locks in the entire unknown world of finance. It is frustrating that this time concept does not operate according to the rhythms of our watches or the bells of the exchanges. This time concept leads to the failure of traditional finance: the collapse of Barings Bank, the bankruptcy of Long-Term Capital Management, the speculative failure of China Aviation Fuel Oil Company, and the astonishing smile of volatility in financial markets—all these phenomena are never covered in any traditional finance textbook and cannot be explained by them. This book was written against this backdrop, documenting the author's new explorations and efforts to unravel these issues.