Bankruptcy of Bahrain and Financial Derivatives

Author: Zhang Guangping
Publisher:
Publish Date: 1998-01-01
Features: The collapse of Barings Bank, which lost over $1 billion, shocked the global financial and public opinion. This world-renowned commercial bank went bankrupt due to excessive trading in financial derivatives. People can't help but ask: What exactly are financial derivatives? Why are they so powerful? Even after Barings Bank was acquired by the Dutch International Group in March 1995, the repercussions did not end. This book attempts to introduce the public to: What are financial derivatives? Why are they so powerful? When explaining financial derivatives, we try to avoid mathematical formulas, so that readers who have not received financial or derivatives training can also read smoothly. The purpose is to reveal to readers the concepts of financial derivatives and their significant leverage mechanism, as well as basic hedging and speculative functions, and other functions related to the collapse of Barings Bank. This book can also serve as an introductory reading for Business Administration Master's students before they formally study financial derivatives courses.