Risk Management and Derivatives

Author: [USA] Stataz
Publisher:
Publish Date: 2004-09-01
Features: Financial derivatives are important tools for corporate risk management. This book starts with the measurement of risk and its impact on corporate value, providing a detailed introduction to how various derivatives can be used as tools for risk management. The book is well-structured, concise in language, and appropriately detailed, making it an excellent textbook. The purpose of this book is to train students to become users of derivatives, not just traders. By understanding when and how to use derivatives to manage risk, both managers and companies can benefit. Based on modern corporate finance theory, the book examines the measurement of value at risk (VaR) and risk cash flows. It then explains how to measure risk and hedge known risk exposures (interest rate and exchange rate risks). Subsequently, it dedicates significant to discussing option pricing, the binomial model, bonds, and interest rate options. Later, it shifts to user-defined derivatives, including swaps, exotic options, and credit risk. The book is well-structured, concise in language, and appropriately detailed, making it an excellent textbook.