Derivatives And Risk Management

Derivatives And Risk Management by Dhanesh Kumar Khatri

Book Summary:

The book, in its Second Editioncontinues to present a detailed analysis of theoretical concepts and practical approach on derivatives—options, futures, forwards and swaps. It provides a deeper insight into the conceptual background as well as practical application of derivatives. Apart from discussing stock, index and commodity derivatives, it also discusses currency, energy, weather and credit derivatives that are of recent origin in the field of derivatives trading.

Three new chapters on Different Types of Market Structures and Derivatives and Operational Aspects of Derivatives Chapter 2),Regulation of Derivatives in India (Chapter 6) and Linkage between Spot Market and Derivatives Market (Chapter 14) have been added in this edition. Whereas an Appendix—Derivatives from The Lenses of Mishaps gives insights on scams which took place in the past.

Practical application of derivatives like trading practices, margin system, valuation of options and futures, linkage between spot market and derivatives market have been discussed using real-life stock and commodity prices. The book features application of derivatives in designing risk management, i.e., hedging strategies and profit maximisation strategies in a lively manner citing real-life data-based examples in a simulated environment. The text contains a good number of examples as well as chapter-end questions for practice on topics like valuation of options and futures, strategic application of derivatives in risk management and profit maximisation in different market swings—upswing, downswing and range-bound movement in the market.

This is a comprehensive yet easy to understand text for the students of MBA/PGDBM/CA/CS/NCFM and other related postgraduate courses.

Audience of the Book :

This book Useful for Management, CA, CS students.

Table of Contents :

1. Financial Markets and Derivatives

2. Different Types of Market Structures and Operational Aspects of Derivatives

3. Derivatives Trading in India

4. Risk and Derivatives-based Hedging Strategies

5. Strategies Using Derivatives—Combination and Spread

6. Regulation of Derivatives in India

7. Valuation of Option

8. Valuation of Futures and Forward

9. Greeks of Option

10. Interest Rate Derivatives—An Overview

11. Currency Derivatives

12. Commodity Derivatives

13. Paradigm Shift in Derivatives Market—Weather Derivatives, Energy Derivatives and Credit Derivatives

14. Linkage between Spot Market and Derivatives Market