All About Derivatives

Everything you need to know about derivatives. All About Derivatives, Second Edition, presents the complex subject of financial derivatives with a clarity and coherence you won't find in other books. Using real-world examples and simple language, it lucidly illustrates what derivatives are and why they are so powerful. This second edition of All About Derivatives provides a rock-solid foundation on: the most common contracts available to you in today's market, key concepts such as cost of carry, settlement, valuation, and payoff, proven methods for establishing fair value, how leverage can work for you—and against you, the various derivative contracts traded today, including forwards, futures, swaps, and options, pricing methods and mathematics for determining fair value, and hedging strategies for managing and reducing different types of risk. Includes a brand-new chapter on the role derivatives played in the 2008 financial meltdown.