Risk Management and Derivatives

by Stulz, Rene M.

• ISBN13: 9780538861014
• ISBN10: 0538861010
• Edition: 1st
• Format: Hardcover
• Copyright: 2002-11-27
• Publisher: Cengage Learning

Summary

Designed specifically for managers, this groundbreaking book emphasizes how to use derivatives to maximize firm value through risk management - instead of just using derivatives to speculate. It presents the crucial tools necessary for executives and derivatives players to effectively hedge with derivatives in order to protect firms from losses. Coverage includes all the pricing tools needed to use derivatives seriously, as well as the tools to evaluate how to use a particular derivative to reduce risk. Risk Management and Derivatives takes a general approach to derivatives, illustrating how to use existing derivatives for risk management - as well as derivatives that do not yet exist.

Table of Contents

Preface	xix
Part 1 Why Risk Management?	1	(110)
Introduction	3	(18)
Investors and Risk Management	21	(30)
Creating Value with Risk Management	51	(26)
A Firm-Wide Approach to Risk Management	77	(34)
Part 2 Hedging with Forwards, Futures, and Options Contracts	111	(356)
Forward and Futures Contracts	113	(38)
Hedging Exposures with Forward and Futures Contracts	151	(38)
Optimal Hedges for the Real World	189	(34)
Identifying and Managing Cash Flow Exposures	223	(34)
Measuring and Managing Interest Rate Risks	257	(42)
Hedging with Options	299	(30)
Option Pricing, Dynamic Hedging, and the Binomial Model	329	(30)
The Black-Scholes Model	359	(38)
Risk Measurement and Risk Management with Nonlinear Payoffs	397	(30)
Options on Bonds and Interest Rates	427	(40)
Part 3 Beyond Plain Vanilla Risk Management	467	(174)
The Demand and Supply for Derivative Products	469	(30)
Swaps	499	(34)
Using Exotic Options	533	(38)
Credit Risks and Credit Derivatives	571	(34)
Recent Developments in the Practice of Risk Management	605	(36)
Part 4 Conclusion	641	(2)
Epilogue	643	(2)
Glossary	645	(8)
Bibliography	653	(10)
Index	663