Financial Derivatives: Futures, Forwards, Swaps, Options, Corporate Securities, And Credit Default Swaps

This book provides a thorough exploration of derivatives markets, focusing on pricing, risk management, and various financial instruments like options and swaps.

In today's financial landscape, derivatives markets are increasingly vital for managing risk and enhancing investment strategies. The book Financial Derivatives: Futures, Forwards, Swaps, Options, Corporate Securities, And Credit Default Swaps serves as a comprehensive resource that bridges theoretical concepts with practical applications. It is designed to complement standard textbooks and is particularly useful for advanced undergraduate and MBA students who are delving into the complexities of derivatives.

This set of lecture notes meticulously covers the essential principles of derivatives pricing within arbitrage-free markets. It introduces key methodologies, such as risk-neutral valuation, which is crucial for accurately assessing the value of derivatives. Additionally, the text emphasizes the importance of hedging strategies, providing readers with the tools to effectively manage financial risk in various market conditions.

Through a structured approach, Financial Derivatives not only explains the mechanics of futures, forwards, swaps, and options but also explores corporate securities and credit default swaps in detail. By the end of the book, readers will have a solid understanding of how these instruments function and their role in contemporary financial markets, enabling them to apply this knowledge in real-world scenarios.