Analysis of Derivatives for the CFA Program [Hardcover]

Don M. Chance (Author)

Book Description

Publication Date: December 2002 | ISBN-10: 0935015930 | ISBN-13: 978-0935015935

Analysis of Derivatives for the CFA® Program introduces students and practitioners to a practical risk management approach to derivatives. The textbook captures current practice and reflects what the general investment practitioner needs to know about derivatives. It does not simply deliver an explanation of various derivatives instruments and positions but provides motivation for every derivatives position by explaining what the manager wants to accomplish prior to addressing the details of the position.

Editorial Reviews

About the Author

Don M. Chance, CFA, holds the William H. Wright, Jr. Endowed Chair for Financial Services at Louisiana State University. He earned his CFA charter in 1986 and has served as a consultant and advisor to AIMR in many capacities, including authorship of monographs on managed futures and real options. He has spoken at many conferences of AIMR and other organizations. He is the author of the university text An Introduction to Derivatives and Risk Management, 6th edition (2003), Essays in Derivatives (1998), and many academic and practitioner articles. He has extensive experience as a consultant and an instructor in professional training programs. Professor Chance is widely quoted in the local, regional, and national media on matters related to derivatives, risk management, and financial markets in general. He was formerly First Union Professor of Financial Risk Management at Virginia Tech, where he founded its student-managed investment fund. He holds a Ph.D. in finance from Louisiana State University.

Product Details

• Hardcover
• Publisher: Assn for Investment Management & (December 2002)
• Language: English
• ISBN-10: 0935015930
• ISBN-13: 978-0935015935
• Product Dimensions: 10 x 7.9 x 1.6 inches
• Shipping Weight: 3.2 pounds (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (1 customer review)
• Amazon Best Sellers Rank: #281,905 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

5 of 15 people found the following review helpful:

5.0 out of 5 stars Detailed and Authoritative!, May 17, 2009

By 

Loyd E. Eskildson "Pragmatist" (Phoenix, AZ.) - See all my reviews
(HALL OF FAME REVIEWER)    (REAL NAME)   

This review is from: Analysis of Derivatives for the CFA Program (Hardcover)

The book is intended to provide the derivatives analysis portion of the CFA curriculum, and is intended to communicate a practical risk management approach to derivatives for the investment generalist.

Derivatives are financial instruments that offer a return based on the return of some other asset. Exchange-traded contracts have standard terms and features and are traded usually at a futures or options exchange. OTC contracts are created by two parties anywhere else. In a futures contract, the futures exchange guarantees to each party that if the other fails to pay, the exchange will. The forward contract is an agreement between two parties to transfer (sell/buy) an asset at a future date at a price established at the start. It is largely a private and unregulated market.

A swap typically is like an agreement to buy at a future date, paying a fixed amount and receiving something of unknown future value. The most common use of a swap is a situation in which a corporation, currently borrowing at a floating rate, enters into a swap that commits it to making a series of interest payments to the swap counter party at a fixed rate, while receiving payments from the swap counter party at a rate related to the floating rate at which it is making loan payments. The floating components cancel, creating a conversion of the original floating-rate loan to a fixed-rate loan.

And on it goes, with lots of detail on valuing and use of derivatives.