Future is uncertain, nobody can predict the future and risk in the business or by investors in the stock exchange market are not predicted by them appropriately. Corporate risk management has over a period of time developed various risk management tools, which can futures, forwards, Options and swaps. In this Book options which gives buyer right but not an obligation to sell or buy the product is used to hedge or minimize the risk. Different types of strategies such as calendar, Butterfly and condor are discussed in detail, which would not only help the investor to hedge the risk but also to earn profits. The Index Derivatives on the popular benchmark S&P CNX Nifty Index in 2000, the National Stock Exchange of India Limited (NSE) today have moved ahead with a varied product offering in equity derivatives. The Exchange currently provides trading in Futures and Options contracts on 5 major indices and in more than 200 securities is also discussed. This book is helpful to investors to learn not only how to mitigate the derivatives market risk, but also how to increase their returns.
Risk is diversified through the financial instrument of derivative. Derivativeis a financial instrument ,its value derives from some other asset which is called as the underlying asset.The underlying asset consists of shares,securities and commodities.This book covers the structure of derivatives,valuation of different types of futures,options,option strategies and swaps.This book is helpful for an investor how he can earns or incurred loss in trading of futures contract.This book is more useful for the university students of Master of Business Administration ,Master of Commerce,academicians and stock traders in stock exchanges.It is also useful for financial executives who want to update their knowledge about the recent trends in futures,options and swaps.
Derivatives market within a short span of time has become an important trading instrument. Everybody wants to know and talk about derivatives, however they remain a unique type of financial instrument that few of us understand. This book is aimed at providing an in-depth insight for a better understanding of instruments and strategies used in derivatives market. Instruments such as Forwards, Futures, Options and Swaps are widely discussed along with strategies such as Cap, Floor, Vanilla, Collars among others. This book provides a conceptual framework in integrating trading strategies to derivatives market. It also enlightens with the insight of review of literature, procedure of a study and a detailed qualitative and quantitative analysis of the data collected. This book will attract people from many concerns i.e. economist, administrators, investors, market analysts and researchers. Even a layman can benefit by reading the book thereby making an appropriate investment strategy.
One book gives you a solid understanding of how derivatives are used to manage the risks of financial decisions. Extremely reader friendly, market-leading INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT (WITH STOCK-TRAK COUPON), 10e is packed with real-world examples while keeping technical mathematics to a minimum. With a blend of institutional material, theory, and practical applications, the book delivers detailed coverage of options, futures, forwards, swaps, and risk management as well as a balanced introduction to pricing, trading, and strategy. The financial information throughout reflects the most recent changes in the derivatives market--one of the most volatile sectors in the financial world. New "Taking Risk in Life" features illustrate the application of risk management in real-world financial decisions. In addition, Stock-Trak software is available with each new text, giving you hands-on practice managing a hypothetical portfolio.
Analytical Finance is a comprehensive introduction to the financial engineering of equity and interest rate instruments for financial markets. Developed from notes from the author's many years in quantitative risk management and modeling roles, and then for the Financial Engineering course at Mälardalen University, it provides exhaustive coverage of vanilla and exotic mathematical finance applications for trading and risk management, combining rigorous theory with real market application.Coverage includes: - Date arithmetic's, quote types of interest rate instruments - The interbank market and reference rates, including negative rates - Valuation and modeling of IR instruments, bonds, FRN, FRA, forwards, futures, swaps, CDS, caps/floors and others - Bootstrapping and how to create interest rate curves from prices of traded instruments - Risk measures of IR instruments - Option Adjusted Spread and embedded options - The term structure equation, martingale measures and stochastic processes of interest rates, Vasicek, Ho-Lee, Hull-While, CIR - Numerical models, Black-Derman-Toy and forward induction using Arrow-Debreu prices and Newton-Raphson in 2 dimension - The Heath-Jarrow-Morton framework - Forward measures and general option pricing models - Black log-normal and, normal model for derivatives, market models and managing exotics instruments - Pricing before and after the financial crisis, collateral discounting, multiple curve framework, cheapest-to-deliver curves, CVA, DVA and FVA
"I am sure practitioners, auditors, and regulators will find the content of Mr Shaik's book of value. The accessible style is also welcome. All in all, a worthwhile addition to the finance literature and one that hopefully helps plug the knowledge gap in this field." - from the foreword by Professor Moorad Choudhry, Brunel UniversityManaging Derivatives Contracts is a comprehensive and practical treatment of the end-to-end management of the derivatives contract operations, systems, and platforms that support the trading and business of derivative products. This book focuses on the processes and systems in the derivatives contract life cycle that underlie and implement the activities of derivatives trading, pricing, and risk management.Khader Shaik, a Wall Street derivatives platform implementation expert, lays out all the fundamentals needed to understand, conduct, and manage derivatives operations. In particular, he provides both introductory and in-depth treatment of the following topics: derivative product classes, the market structure, mechanics, and players of derivatives markets, types of derivative contracts and life cycle management, derivatives technology platforms, software systems, and protocols, derivatives contracts management, and the new regulatory landscape as shaped by reforms such as Dodd-Frank Title VII and EMIR. Managing Derivatives Contracts focuses on the operational processes and market environment of the derivatives life cycle, it does not address the mathematics or finance of derivatives trading, which are abundantly treated in the standard literature.Managing Derivatives Contracts is divided into four parts. The first part provides a structural overview of the derivatives markets and product classes. The second part examines the roles of derivatives market players, the organization of buy-side and sell-side firms, critical data elements, and the Dodd-Frank reforms. Within the framework of total market flow and straight-through processing as constrained by regulatory compliance, the core of the book details the contract life cycle from origination to expiration for each of the major derivatives product classes, including listed futures and options, cleared and bilateral OTC swaps, and credit derivatives. The final part of the book explores the underlying information technology platform, software systems, and protocols that drive the end-to-end business of derivatives. In particular, it supplies actionable guidelines on how to build a platform using vendor products, in-house development, or a hybrid approach.
Learn how C++ is used in the development of solutions for options and derivatives trading in the financial industry. As an important part of the financial industry, options and derivatives trading has become increasingly sophisticated. Advanced trading techniques using financial derivatives have been used at banks, hedge funds, and pension funds. Because of stringent performance characteristics, most of these trading systems are developed using C++ as the main implementation language.Options and Derivatives Programming in C++ covers features that are frequently used to write financial software for options and derivatives, including the STL, templates, functional programming, and support for numerical libraries. New features introduced in the C++11 and C++14 standard are also covered: lambda functions, automatic type detection, custom literals, and improved initialization strategies for C++ objects.Readers will enjoy the how-to examples covering all the major tools and concepts used to build working solutions for quantitative finance. It includes advanced C++ concepts as well as the basic building libraries used by modern C++ developers, such as the STL and Boost, while also leveraging knowledge of object-oriented and template-based programming. Options and Derivatives Programming in C++ provides a great value for readers who are trying to use their current programming knowledge in order to become proficient in the style of programming used in large banks, hedge funds, and other investment institutions. The topics covered in the book are introduced in a logical and structured way and even novice programmers will be able to absorb the most important topics and competencies.What You Will Learn Grasp the fundamental problems in options and derivatives trading Converse intelligently about credit default swaps, Forex derivatives, and more Implement valuation models and trading strategies Build pricing algorithms around the Black-Sholes Model, and also using the Binomial and Differential Equations methods Run quantitative finance algorithms using linear algebra techniques Recognize and apply the most common design patterns used in options trading Save time by using the latest C++ features such as the STL and the Boost libraries Who This Book Is ForProfessional developers who have some experience with the C++ language and would like to leverage that knowledge into financial software development. This book is written with the goal of reaching readers who need a concise, algorithms-based book, providing basic information through well-targeted examples and ready to use solutions. Readers will be able to directly apply the concepts and sample code to some of the most common problems faced in the analysis of options and derivative contracts.