Futures and Options (Paperback)

by Euromoney (Author), D. C. Gardner (Author), Cormac Butler (Author)

Editorial Reviews

Book Description
Banks are growing more and more dependent on derivatives such as futures and options, not only as a means of hedging risk but also for speculative purposes. Derivatives have a very important role to play in developing lucrative financial engineering strategies but, as recent newspaper headlines have shown, they can be misused, contributing to significant losses. Clearly both traders, risk managers and end users would benefit if they knew exactly what derivatives are capable of doing, their limitations and their role in risk reduction. This new five-module workbook is designed to give the reader a good intuitive understanding of futures and options. Modules One and Two introduce derivatives and illustrate their role in risk reduction. Readers will see from many illustrations, the role that futures have in speculating and risk reduction. The books will give practical guidance on how to take positions whilst limiting the risk involved. Practical case studies will allow the reader to understand the applications whilst appreciating the dangers of derivative transactions. Module Three Four and Five concentrate on options. Module Three introduces the types of options available and their uses. Readers will be able to see payoff profiles and will gain a good understanding of how options are used as a means of taking positions or reducing risk. Valuation models, their relevance and limitations are discussed and finally, more advanced option strategies are discussed. From this book the reader will learn: * How futures and forwards are valued * The relationship between interest rates and forward future prices * Risk profiles of future and forward contracts * Initial and variation margins * Present value calculations * What arbitrage opportunities exist between future and cash prices * How conversion factors work and arbitrage opportunities that may exist with cheapest-to-deliver bonds * What types of options exist and their usefulness for hedging and trading purposes * How options are priced and the weaknesses with the various pricing approaches * How to delta hedge a portfolio when you have written options * Advanced option strategies including straddles, strangles and calendar spreads

About the Author
Cormac Butler has gained international experience as a freelance training consultant, working in Hong Kong, Croatia, Poland, Estonia, London and Dublin. He now specialises in risk management derivatives trading having worked as a consultant in various banks including Salomon Brothers, Banque Paribas, Commonwealth Development Corporation, Allied Irish Banks, and Lombard Risk Systems (producers of Oberon). He graduated from the University of Limerick, with a degree in finance. Apart from merchant banks, Cormac has worked with Coopers & Lybrand and Peat Marwick.

• Paperback: 204 pages
• Publisher: Euromoney Publications (February 1999)
• Language: English
• ISBN-10: 185564679X
• ISBN-13: 978-1855646797
• Shipping Information: View shipping rates and policies
• Average Customer Review: No customer reviews yet. Be the first.
• Amazon.com Sales Rank: #6,444,799 in Books (See Bestsellers in Books)
  
  (Publishers and authors: Improve Your Sales)
• Also Available in: Paperback  |  All Editions