Introduction to Derivatives and Risk Management, 8th Edition

Give your students a solid understanding of financial derivatives and their use in managing the risks of financial decisions with this leading text. Chance/Brooks’ AN INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 8E offers an outstanding blend of institutional material, theory, and practical applications. The latest financial information throughout this edition and timely Internet updates on the text’s website ensure the material reflects the most recent changes in today’s financial world. You’ll find detailed, but flexible, coverage of options, futures, forwards, swaps, and risk management as well as a balanced introduction to pricing, trading, and strategy. You can easily address only the topics and chapters that best fit your needs. A variety of practical end-of-chapter applications, memorable examples from real businesses throughout the learning features, and minimal use of technical mathematics keep the text’s presentation accessible and engaging. Stock-Trak software, available with each new text, provides additional value and opportunity for practical working experience. Count on this exceptional text to provide the thorough introduction to derivatives and risk management that students need for success in financial business today.

Table of Contents

CHAPTER 1 Introduction

PART I: Options
CHAPTER 2 Structure of Options Markets
CHAPTER 3 Principles of Option Pricing
CHAPTER 4 Option Pricing Models: The Binomial Model
CHAPTER 5 Option Pricing Models: The Black-Scholes-Merton Model
CHAPTER 6 Basic Option Strategies
CHAPTER 7 Advanced Option Strategies

PART II: Forwards, Futures, and Swaps
CHAPTER 8 The Structure of Forward and Futures Markets
CHAPTER 9 Principles of Pricing Forwards, Futures, and Options on Futures
CHAPTER 10 Futures Arbitrage Strategies
CHAPTER 11 Forward and Futures Hedging, Spread, and Target Strategies
CHAPTER 12 Swaps

PART III: Advanced Topics
CHAPTER 13 Interest Rate Forwards and Options
CHAPTER 14 Advanced Derivatives and Strategies
CHAPTER 15 Financial Risk Management Techniques and Applications
CHAPTER 16 Managing Risk in an Organization

Appendix A: List of Formulas
Appendix B: References
Appendix C: Solutions to Concept Checks