1st Edition

Financial Risk Management and Derivative Instruments

  • Available for pre-order. Item will ship after May 17, 2021
ISBN 9780367674793
May 17, 2021 Forthcoming by Routledge
264 Pages 32 B/W Illustrations

USD $66.95

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Book Description

Financial Risk Management and Derivative Instruments is an accessible, concise textbook offering a solid introduction to the essential principles of risk management and derivatives. Structured in two parts, the book first looks at markets and uncertainty, examining risk in the stock market and the bond market, leveraging and growth. It then moves on to topics in derivative instruments and financial management, including futures, options and the Black-Scholes model.

The text sets the topics in their global context, referencing financial shocks such as Brexit and the Covid-19 pandemic. On top of the accessible writing style, students are supported through a range of pedagogical features in the text, ranging from key insights boxes, illustrative examples boxes and end-of-chapter tutorials to check understanding. The book is also supplemented by a set of PowerPoint slides.

This textbook will be the ideal companion for introductory undergraduate courses on derivatives, financial instruments and financial risk management, as part of programmes in investment and corporate finance. It will also be a useful text for masters level and MBA finance courses.

Table of Contents

1. Stock Market Risk: Fundamentals and Behaviour

2. Financial Leverage and Risk

3. Bond Market Risk: Interest Rates

4. The Nature of Growth

5. Interest Rate Futures (Forwards)

6. Futures Contracts: Hedging/Speculating on Currency Risk

7. Options Contracts: Hedging/Speculating on Currency Risk

8. The Black-Scholes Model

9. Trading Index Futures

10. Option Strategies

11. Option Pricing: The Greeks

12. Derivative Instruments and the Global Financial Crisis (2007-08)

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Michael Dempsey is Professor of Finance at Ton Duc Thang University in Ho Chi Minh City, Vietnam, having previously been Professor of Finance and Head of Finance at RMIT University, Melbourne, Australia.

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