Derivatives Demystified (PDF)

Derivatives are everywhere in the modern world and it is important
for everyone in banking, investment and finance to have a good
understanding of the subject. Derivatives Demystified
provides a step-by-step guide to the subject, enabling the reader
to have a solid, working understanding of key derivative products.

Adopting a highly accessible approach, the author explains
derivative products in straightforward terms and without the
complex mathematics that underlie the subject, focusing on
practical applications, case studies and examples of how the
products are used to solve real-world problems. Derivatives
Demystified follows a sequence that is designed to show that,
although there are many applications of derivatives, there are only
a small number of basic building blocks, namely forwards and
futures, swaps and options. The book shows how each building block
is applied to different markets and to the solution of various risk
management and trading problems.

This new edition will be fully revised to reflect the many
changes the derivatives markets have seen over the last three
years. New material will include a comprehensive history of
derivatives, leading up to their use and abuse in the current
credit crisis. It will also feature new chapters on
regulation and control of derivatives, commodity derivatives,
credit derivatives and structured products and new derivative
markets including inflation linked and insurance linked
products.

Derivatives Demystified is essential reading for everyone
who operates in the financial markets or within the corporate
environment who requires a good understanding of these important
financial instruments.