3 Review(s)

This leading text gives students a solid understanding of financial derivatives and their use in managing the risks of financial decisions. AN INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 9E, provides a blend of institutional material, theory, and practical applications. The latest financial information throughout this edition and timely updates on the text's website ensure your course reflects the most recent changes in one of the most volatile sectors of today's financial world. You'll find detailed coverage of options, futures, forwards, swaps, and risk management as well as a balanced introduction to pricing, trading, and strategy. A variety of practical end-of-chapter applications, memorable examples from real businesses, and minimal use of technical mathematics keep the text accessible and engaging for students. Stock-Trak software, available with each new text, provides additional value and practical application opportunities for your students. Approximately 25 PowerPoint slides per chapter highlight tables and figures with useful hyperlinks that allow you to jump to the table or figure and back again without breaking the flow of your lecture. The online Solutions Review Manual gives your students a useful online review tool, providing answers to the end-of-chapter problems, as well as the step-by-step solutions, so students can check their own work and determine exactly where they may have made errors. New Test Bank questions help you better evaluate your students' understanding of the text's concepts. You'll find a variety of more than 300 questions within this proven Test Bank. Salient Features MOST RECENT ARTICLES AND READINGS REFLECT CHANGES IN TODAY''S FINANCIAL BUSINESS WORLD: The latest updates, articles and suggested readings at the end of each chapter keep your course abreast of the many challenges and changes throughout today''s financial crises. Internet-related information and the book''s companion web site further ensure the material you present is the most current.   EXTENSIVE, ENGAGING ILLUSTRATIONS CLARIFY CONCEPTS: A wealth of captivating, useful illustrations, including more than 100 figures and more than 100 tables throughout this edition, further expand upon and reinforce the concepts presented in the text. Figures in the text build on each other to illustrate links between stocks, risk-free bonds, futures, options, forwards, Black-Scholes call/put pricing, and similar concepts.   MINIMAL USE OF TECHNICAL MATHEMATICS KEEPS THE BOOK ACCESSIBLE FOR STUDENTS: While financial derivatives are unavoidably a technical subject, the authors do not emphasize calculus that is not necessary for learning material at this level. This edition uses a flexible mathematical approach that places more complex material in end-of-chapter appendices -- all while keeping the text challenging and applicable to today''s needs.   PROVEN END-OF-CHAPTER PRACTICE AND NEW TEST BANK PROBLEMS CHALLENGE STUDENTS'' UNDERSTANDING: A variety of end-of-chapter problems in this book provide focused opportunities for students to apply the concepts they''ve learned.   ENGAGING QUOTES BEGIN EACH CHAPTER AND DIRECT THE READER''S ATTENTION TO THE CONTENT THAT FOLLOWS: This edition captures your students'' attention at the beginning of the chapter as intriguing quotes turn the reader''s focus to the useful presentation of theory and applications that follow.   UPDATED "MAKING THE CONNECTION" DEMONSTRATES THE MOST RECENT CHANGES IN THE FIELD TODAY: You can clearly show your students the power of derivatives at work in today''s financial industry with fresh examples and explanations within "Derivatives Tools" features throughout this edition.   FRESH, DYNAMIC POWERPOINT SLIDES BRING LECTURES TO LIFE: Now you can clarify principles for your students and keep them engaged with dynamic, updated PowerPoint Presentation slides that are easy to use and simple to customize to your unique course needs.   SUPPORT WEBSITE: Give your students the tools they need for a strong understanding of derivatives and risk management with the rich array of learning resources and teaching tools. You''ll find the latest updates to keep your course on the cutting edge including updates to Errata, useful Web links, author-provided spreadsheets, and a new Technical Notes feature that clearly shows how various formulas and measures of various kinds of risk are derived. SOLUTIONS MANUAL: Give your highly motivated students this useful online review tool to excel in your course. This Solutions Review Manual provides answers to the end-of-chapter problems, as well as the step-by-step solutions so students can check their own work and determine exactly where they may have made errors.   TEST BANK: The new Test Bank questions in this edition help you better evaluate your students'' understanding of the text''s concepts. You''ll find a variety of more than 300 questions within this proven Test Bank.   NEW "MAKING THE CONNECTION" BOXES DEMONSTRATE FINANCIAL DECISION-MAKING IN ACTION: Now you can give your students insights into how the content applies directly to financial decision-making in today''s business world. Engaging "Making the Connection" boxes highlight examples from real businesses and actual market conditions to emphasize the practicality of chapter theories.   NEW "CONCEPT CHECKS" ENSURE STUDENT COMPREHENSION: This new set of "Concept Checks" questions at the end of each chapter assists the students in clarifying and ensuring that they understand the basic materials covered in the text. Solutions to these questions at the end of the book allow students to check their own comprehension. Table of Contents 1. Introduction. Part I Options. 2. Structure of Options Markets. 3. Principles of Option Pricing. 4. Option Pricing Models: The Binomial Model. 5. Option Pricing Models: The Black-Scholes-Merton Model. 6. Basic Option Strategies. 7. Advanced Option Strategies. Part II Forwards, Futures, and Swaps. 8. The Structure of Forward and Futures Markets. 9. Principles of Pricing Forwards, Futures, and Options on Futures. 10. Futures Arbitrage Strategies. 11. Forward and Futures Hedging, Spread, and Target Strategies. 12. Swaps. Part III Advanced Topics. 13. Interest Rate Forwards and Options. 14. Advanced Derivatives and Strategies. 15. Financial Risk Management Techniques and Applications. 16. Managing Risk in an Organization. Appendix A: List of Important Formulas. Appendix B: References. Appendix C: Solutions to Concept Checks. Glossary. Index. About the Author Don M. Chance (Ph.D., Louisiana State University; CFA), is the William H. Wright Endowed Chair for Financial Services at Louisiana State University. His research has appeared in leading academic and professional journals, has been presented at seminars, conferences and workshops in the U.S. and many foreign countries, has been supported by the Chicago Board of Trade and the Association for Investment Management and Research, and has appeared as contributed chapters to many books. He has been cited or quoted in The Wall Street Journal, The San Francisco Chronicle, The Financial Times, Barron's, Forbes, Institutional Investor, Pensions and Investments, The New York Times, The St. Louis Post-Dispatch, USA Today, the Montreal Gazette, the Dow Jones, Bloomberg, and Knight-Ridder news wires, and the ABC and CBS on-line news services, and he has appeared on CNBC's The Money Club. He is associate editor of The Journal of Derivatives, The Journal of Alternative Investments and The Financial Review and is the author of An Introduction to Derivatives and Risk Management (6th edition forthcoming, 2003) and Essays in Derivatives. Professor Chance has extensive experience as an instructor in professional development programs, a consultant, and as a speaker before practitioner groups. He was founder of Virginia Tech's student-managed investment portfolio. Robert Brooks is the SouthTrust Professor of Financial Management at The University of Alabama; President of Financial Risk Management, LLC, a derivatives consulting firm; and founding Partner of BlueCreek Investment Partners, LLC, a money management firm. Dr. Brooks earned his B.S. in finance from Florida State University and his Ph.D. in finance from the University of Florida. He has authored numerous articles appearing in both academic and practitioner journals. Professor Brooks has been quoted in The Wall Street Journal, Bloomberg News, and The Bond Buyer, as well as numerous regional newspapers. Dr. Brooks has consulted with money managers, major public utilities, energy companies, auditing firms, corporations, investment bankers, elected municipal officials, and commercial bankers regarding managing financial risks, derivatives valuation and software development. He also conducts professional development seminars on various aspects of financial risk management.