Description
Book SynopsisThis book discusses in detail the workings of financial markets and over-the-counter (OTC) markets, focusing specifically on standard and complex derivatives. The subjects covered range from the fundamental products in OTC markets, standard and exotic options, the concepts of value at risk, credit derivatives and risk management, to the applications of option pricing theory to real assets.To further elucidate these complex concepts and formulas, this book also explains in each chapter how theory and practice go hand-in-hand. This volume, a culmination of the author's 12 years of professional experience in the field of finance, derivative analysis and risk management, is a valuable guide for postgraduate students, academics and practitioners in the field of finance.
Table of ContentsDerivatives and Asset Pricing in a Discrete-Time Setting: Basic Concepts and Strategies; Option Pricing in Continuous-Time: The Black-Scholes-Merton Theory and Its Extensions; Exchange, Forward Start, Chooser Options and Their Applications; Rainbow Options and Their Applications; Extendible Options and Their Applications; Currency Translated Options, Hybrid Securities and Their Applications; Binaries, Barriers and Their Applications; Lookback Options, Double Lookback Options and Their Applications; Asian and Flexible Asian Options and Their Applications; Steps, Parisian and Static Hedging of Exotic Options; Value at Risk: Basic Concepts and Applications in Risk Management; Credit Risk and Credit Valuation: The Basic Concepts; Credit Derivatives: The Basic Concepts; Default Risk and the Pricing of Corporate Bonds, Swaps and Options; Contingent Claims Analysis and Its Applications in Corporate Finance: The Case of Real Options; Extended Discounted Cash Flow Techniques and Real Options Analysis within Information Uncertainty; Option Pricing When the Underlying Asset is Non-observable.
