The Book 'Derivatives: Markets, Valuation, and Risk Management' Tackles the Derivatives Markets and Why and How They Flourish.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c43012) has announced the addition of Derivatives: Markets, Valuation, and Risk Management to their offering.
Filled with in-depth insight and practical advice, Derivatives provides readers with a comprehensive understanding of derivatives markets The derivatives markets are the financial markets for derivatives. The market can be divided into two, that for exchange traded derivatives and that for over-the-counter derivatives. , derivatives valuation, and risk management using derivative derivative: see calculus.
In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. contracts. With this book, author Robert Whaley-a leading authority in this field-details the derivatives markets and why and how they have flourished. Chapter by chapter, Whaley provides the underpinnings of derivatives valuation and risk measurement, shows how derivatives can be used effectively in managing risk exposures related to commodities, stocks, stock portfolios, bonds, currencies, interest rates, and credit, and offers readers valuable guidance that cannot be found anywhere else.
This book details the derivatives markets and why and how they flourish. Derivative contracts are incredibly powerful tools for managing expected return Expected Return
The average of a probability distribution of possible returns, calculated by using the following formula: and risk. In order to take full advantage of the opportunities they afford, we need to have a thorough understanding of how derivative contracts are valued. Without an understanding of the economic factors that drive valuation, we cannot measure risk accurately, and, if we cannot measure risk accurately, we certainly cannot manage it effectively.
There are 10 chapter sections in this book, along with three appendices ap·pen·di·ces
A plural of appendix. . Section I sketches the derivatives landscape. Section II, together with Appendixes A and B, review the basic principles of security valuation. The purpose of this section is to ensure that everyone is on the same page as readers enter the discussions of derivative contract valuation and risk measurement. Sections III and IV focus exclusively on derivatives valuation and risk measurement. These principles are developed in an environment in which the underlying asset is generic. Whaley does this to emphasize the fact that the valuation and risk measurement principles are generally not asset-specific the valuation equations/methods and risk management strategies for foreign currency derivatives are no different than those used for stock derivatives, stock index derivatives, interest rate derivatives An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.
The interest rate derivatives market is the largest derivatives market in the world. , and commodity derivatives. With the general valuation/risk measurement framework in hand, Whaley then focuses in Sections V through IX on derivative contracts in specific asset categories. Aside from pointing out any asset market idiosyncrasies that may affect valuation, specific risk management strategies/practices, as they apply to the particular asset market, are discussed. Section X attempts to provide a broad perspective on derivatives use, integrating many of the ideas that are developed in the book. The three appendices then cover overviews and contain a glossary A term used by Microsoft Word and adopted by other word processors for the list of shorthand, keyboard macros created by a particular user. See glossaries in this publication and The Computer Glossary. of terms.
About the author
Robert E. Whaley is the Valere Blair Potter Professor of Management at the Owen Graduate School of Management, Vanderbilt University Vanderbilt University, at Nashville, Tenn.; coeducational; chartered 1872 as Central Univ. of Methodist Episcopal Church, founded and renamed 1873, opened 1875 through a gift from Cornelius Vanderbilt. Until 1914 it operated under the auspices of the Methodist Church. . His current research interests are in the areas of market microstructure Market microstructure
The functional setup of a market. , valuation of exotic options Exotic Option
Any non-standard option.
This is the opposite of a plain vanilla option.
See also: Barrier Option, Down-and-In Option, Down-and-Out Option, Equity-Linked Foreign Exchange Option - ELF-X, Option, Quanto Option, Vanilla Option
, stock splits, and executive stock option valuation. Professor Whaleys research has been published in top academic and practitioner journals, and he is a frequent presenter at major conferences and seminars. He holds a number of editorial positions, including Associate Editor of the Journal of Futures Markets futures market, a commodity exchange where contracts for the future delivery of grain, livestock, and precious metals are bought and sold. Speculation in futures serves to protect both the developers and the users of the commodities from unfavorable and unpredictable , Journal of Derivatives, Journal of Risk, Pacific-Basin Finance Journal, and Advances in Futures and Options Research.
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