Derivative Securities

Skilled investors know that to play in the high-risk global-investment environment, they must maximize return while hedging risk. To do this successfully, investors must understand the intricacies and nuances of a myriad of investment vehicles, many relatively new to the investment arena. In this book, two renowned experts show how a unified approach to derivatives, one that pay equal attention to options and futures pricing in both theory and practice, allows the investor to achieve his goals. Particular attention is paid to the issue of credit risk in pricing and the crucial function of risk management. A broad range of derivatives is covered, including options, futures, commodities, swaps, equity indices, foreign currency, interest rate contracts, interest rate derivatives and more.