All About Derivatives

by Durbin, Michael P.

• ISBN13: 9780071451475
• ISBN10: 0071451471
• Edition: 1st
• Format: Paperback
• Copyright: 2005-08-24
• Publisher: McGraw-Hill

Summary

Financial derivatives, from standard put and call options to more complex strategies and combinations, are among the most versatile, powerful, and valuable tools available to investors. All About Derivatives introduces you to the many different types of derivatives, providing simple explanations and easy-to-follow methods for using each.

Author Biography

Michael Durbin is a veteran business systems analyst and project manager specializing in financial derivative trading systems. His projects include high-performance systems for Bank of America, Bank One, and a leading global hedge fund.

Table of Contents

Acknowledgments	ix
Conventions	xi
Introduction	xiii
Chapter 1 Derivatives in a Nutshell	1	(14)
Chapter 2 The Forward Contract	15	(10)
Chapter 3 The Futures Contract	25	(6)
Chapter 4 The Swap Contract	31	(8)
Chapter 5 The Option Contract	39	(22)
Chapter 6 Credit Contracts	61	(12)
Chapter 7 Using Derivatives to Manage Risk	73	(14)
Chapter 8 Pricing Forwards and Futures	87	(24)
Chapter 9 Pricing Swaps	111	(14)
Chapter 10 Pricing Options	125	(48)
Chapter 11 Hedging a Derivatives Position	173	(20)
Postscript Good Things and Bad Things	193	(6)
Appendix A All About Interest	199	(18)
Appendix B Swap Conventions	217	(12)
Appendix C Advanced Binomial Option Pricing	229	(10)
Bibliography	239	(2)
Index	241