Derivatives Demystified: A Step-by-Step Guide to Forwards, Futures, Swaps and Options (The Wiley Finance Series) [Paperback]

Andrew M. Chisholm (Author)

Book Description

Series: The Wiley Finance Series | Publication Date: August 27, 2004

The book is a step-by-step guide to derivative products. By distilling the complex mathematics and theory that underlie the subject, Chisholm explains derivative products in straightforward terms, focusing on applications and intuitive explanations wherever possible. Case studies and examples of how the products are used to solve real-world problems, as well as an extensive glossary and material on the latest derivative products make this book a must have for anyone working with derivative products.

Editorial Reviews

From the Inside Flap

Derivatives Demystified follows a sequence that is designed to show that, although there are many applications of derivatives, there are only a small number of basic building blocks, namely forwards and futures, swaps and options.  The book shows how each building block is applied to different markets and to the solution of various risk management and trading problems.

Thoroughly up-to-date, the author includes explanations of later-generation products such as barrier options, cliquets and choosers.  There are also sections on credit default and equity swaps and there are full chapters devoted to convertible and exchangeable bonds and to structured products such as equity-linked notes and bonds issued through synthetic securitization.  The final chapter has information on the financial calculations that underpin the derivatives market, for those who wish to explore this topic.

From the Back Cover

Derivatives are everywhere in the modern world and it is important for everyone in banking, investment and finance to have a good understanding of the subject. Derivatives Demystified provides a step-by-step guide to the subject, enabling the reader to have a solid, working understanding of key derivative products.

Adopting a highly accessible approach, the author explains derivative products in straightforward terms and without the complex mathematics that underlie the subject, focusing on practical applications, case studies and examples of how the products are used to solve real-world problems. Derivatives Demystified follows a sequence that is designed to show that, although there are many applications of derivatives, there are only a small number of basic building blocks, namely forwards and futures, swaps and options. The book shows how each building block is applied to different markets and to the solution of various risk management and trading problems.

Thoroughly up-to-date, the author includes explanations of later-generation products such as barrier options, cliquets and choosers. There are also sections on credit default and equity swaps and there are full chapters devoted to convertible and exchangeable bonds and to structured products such as equity-linked notes and bonds issued through synthetic securitization. The final chapter has information on the financial calculations that underpin the derivatives market, for those who wish to explore this topic.

Derivatives Demystified is essential reading for everyone who operates in the financial markets or within the corporate environment who requires a good understanding of these important financial instruments.

See all Editorial Reviews

Product Details

• Paperback: 250 pages
• Publisher: Wiley (August 27, 2004)
• Language: English
• ISBN-10: 047009382X
• ISBN-13: 978-0470093825
• Product Dimensions: 9.4 x 6.6 x 0.9 inches
• Shipping Weight: 1 pounds
• Average Customer Review: 4.8 out of 5 stars  See all reviews (9 customer reviews)
• Amazon Best Sellers Rank: #565,332 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

22 of 23 people found the following review helpful:

5.0 out of 5 stars Brilliant and clear introduction, December 31, 2004

By 

Don Bradman "Don" (London) - See all my reviews

This review is from: Derivatives Demystified: A Step-by-Step Guide to Forwards, Futures, Swaps and Options (The Wiley Finance Series) (Paperback)

This is a really good introduction to derivative products. I have tried a lot of other books in this field and ended up thinking that they were far too complicated and obscure. This book is written in a very clear and simple way, and finally I have a real understanding of what is going on in derivative products, a subject I need to understand for my job in banking.

17 of 17 people found the following review helpful:

5.0 out of 5 stars Does exactly what it says in the title, March 22, 2005

By 

Jim Gillespie "Jim" (New York NY) - See all my reviews

This review is from: Derivatives Demystified: A Step-by-Step Guide to Forwards, Futures, Swaps and Options (The Wiley Finance Series) (Paperback)

This book is for everyone in finance and banking or studying the subject who needs a well-written introduction or recap on derivative products. There are lots of examples and cases and the writing style is excellent, not that common in books about finance. Highly recommended.

12 of 14 people found the following review helpful:

5.0 out of 5 stars Well done., October 11, 2005

By 

A. Sudol "R Sudol" (Ramsey, NJ) - See all my reviews
(REAL NAME)   

This review is from: Derivatives Demystified: A Step-by-Step Guide to Forwards, Futures, Swaps and Options (The Wiley Finance Series) (Paperback)

This book is what you expect from the title. It is a clear concise guide to understanding the logic and execution behind derivative trades. These principles can be used for trading but even more so for corporate finance executives to handle everyday currency exchange problems or to hedge against potential volatility in the future market. I read this one for a class first but am eager to pick up the Capital Markets book too.