Derivative Instruments

A Guide to Theory and Practice


  • Brian Eales, Principal Lecturer, Department of Economics, Finance and Business at London Metropolitan University
  • Moorad Choudhry, Chief Executive Officer, Habib Bank Zurich PLC and Visiting Professor at the Department of Mathematical Sciences, Brunel University.

The authors concentrate on the practicalities of each class of derivative, so that readers can apply the techniques in practice. Product descriptions are supported by detailed spreadsheet models, illustrating the techniques employed, some which are available on the accompanying companion website.

This book is ideal reading for derivatives traders, salespersons, financial engineers, risk managers, and other professionals involved to any extent in the application and analysis of OTC derivatives.
View full description


Book information

  • Published: March 2003
  • ISBN: 978-0-7506-5419-7


"The authors cover the subject with exceptional clarity and precision. This is a superlative work and one that will be of immense value to practioners and graduate students alike." Aaron Nematnejad Fixed Income Derivative Analytics, Bloomberg L.P. "A book that the market has been waiting for: the authors cut through the dry theory and present us with a highly readable and practical guide to derivatives. This book is a must for anyone working in the financial markets." Graham 'Harry' Cross Fixed Income Trading, Van Der Moolen UK Ltd.

Table of Contents

Introduction to derivatives; Overview of bond instruments; Forewards and futures valuation; FRA's and interest rate futures; Bond futures; Swaps; Credit derivatives and CDOs; Equity futures; Equity swaps; Equity and equity index options; Option pricing; Equity linked structured products