Description

Its unified treatment of derivative security applications to both risk management and speculative trading separates this book from others. Presenting an integrated explanation of speculative trading and risk management from the practitioner's point of view, Risk Management, Speculation, and Derivative Securities is the only standard text on financial risk management that departs from the perspective of an agent whose main concerns are pricing and hedging derivatives. After offering a general framework for risk management and speculation using derivative securities, it explores specific applications to forward contracts and options. Not intended as a comprehensive introduction to derivative securities, Risk Management, Speculation, and Derivative Securities is the innovative, useful approach that addresses new developments in derivatives and risk management.

Key Features

*The only standard text on financial risk management that departs from the perspective of an agent whose main concerns are pricing and hedging derivatives *Examines speculative trading and risk management from the practitioner's point of view *Provides an innovative, useful approach that addresses new developments in derivatives and risk management

Readership

Professionals and graduate students working in the areas of finance, financial risk management, and financial engineering.

Table of Contents

Part I: Derivative Securities, Risk Management, and Speculation Derivative Securities Risk Management Concepts Speculative Trading Concepts Part II: Futures and Forward Contracts Arbitrage and the Basis The Mechanics of Spread Trading Risk Management: Hedging and Diversification Part III: Options Contracts Option Basics Option Valuation Application and Extension of Option Valuation Techniques Appendix I: Basic Mathematics and Statistical Concepts Appendix II: Money Market and Fixed Income Calculations Appendix III: Mathematics for Option Valuation References Index

Details

No. of pages:
601
Language:
English
Copyright:
© 2002
Published:
Imprint:
Academic Press
eBook ISBN:
9780080480756
Print ISBN:
9780125588225
Print ISBN:
9780123995995

About the author

Geoffrey Poitras

Faculty of Business Administration, Simon Fraser University, Burnaby, British Columbia, Canada

Affiliations and Expertise

Simon Fraser University, Burnaby, British Columbia, Canada

Reviews

"This book is a refreshing and quality treatment of the subject on derivatives and their application in corporate risk management using an economic theoretic framework. The many relevant industry examples in the book provide for palatable reading." @source:--Kian-Guan Lim, Professor of Finance, Singapore Management University @qu:"Risk management is important in all aspects of trading, whether speculative or hedge trading, as Geoffrey Poitras so aptly makes clear in this book. Poitras does an excellent job of presenting the concepts and ideas that guide sound risk management decision making and then illustrates them with practical, yet sophisticated, examples. Solid ideas, excellent explanations and some thoughtful questions at the end of each Chapter make this an extremely valuable and useful teaching tool". @source:--Mark J. Powers, Former Editor, The Journal of Futures Markets @qu:"Geoff Poitras has written a clear and useful book on risk management and the role of derivatives. It should prove to be very useful to advanced students of financial risk management and related topics." @source:--Christian C. P. Wolff, Professor of Finance, Maastricht University and Program Director, Amsterdam Institute of Finance (AIF)