Financial Engineering

Author: Lin Qingquan, Editor-in-Chief
Publisher:
Publish Date: 2005-06-01
Features: From the framework of this book, it consists of four parts: An Overview of Financial Engineering, Theories of Financial Engineering, Financial Derivatives, and Financial Engineering Technology and Management. The Overview of Financial Engineering primarily introduces the definition and analytical methods of financial engineering, the emergence and development of financial engineering, and the basic knowledge of major financial derivatives (such as forwards, futures, options, and swaps). The Theories of Financial Engineering is the core part of the book, mainly covering portfolio theory, asset pricing models, the efficient market hypothesis, no-arbitrage analysis, the Modigliani-Miller theorem, options and the binomial tree model, and the Black-Scholes option pricing theory. The Financial Derivatives section is categorized based on the underlying assets of financial derivatives, introducing derivative products based on currencies, interest rates, and equities, respectively. The Financial Engineering Technology and Management section includes: foreign exchange risk management, equity risk management, interest rate risk management, credit risk management, value at risk (VaR) measurement, and the application of option theory in corporate finance, primarily covering convertible bonds, stock options, and real options.