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OPTION, FUTURES, AND OTHER DERIVATIVES

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In the last 30 years derivatives have become increasingly important in finance. Futures and options are now traded actively on many exchanges throughout the world. Many different types of forward contracts, swaps, options, and other derivatives are regularly traded by financial institutions, fund managers, and corporate treasurers in the over- the-counter market. Derivatives are added to bond issues, used in executive compensa tion plans, embedded in capital investment opportunities, and so on. We have now reached the stage where anyone who works in finance needs to understand how derivatives work, how they are used, and how they are priced..

A derivative can be defined as a financial instrument whose value depends on (or derives from) the values of other, more basic, underlying variables. Very often the variables underlying derivatives are the prices of traded assets. A stock option, for example, is a derivative whose value is dependent on the price of a stock. However, derivatives can be dependent on almost any variable, from the price of hogs to the amount of snow falling at a certain ski resort.

Since the first edition of this book was published in 1988 there have been many developments in derivatives markets. There is now active trading in credit derivatives, electricity derivatives, weather derivatives, and insurance derivatives. Many new types of interest rate, foreign exchange, and equity derivative products have been created. There have been many new ideas in risk management and risk measurement. Analysts

have also become more aware of the need to analyze what are known as real options.

This edition of the book reflects all these developments. In this opening chapter we take a first look at forward, futures, and options markets and provide an overview of how they are used by hedgers, speculators, and arbitra- geurs. Later chapters will give more details and elaborate on many of the points made here.

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Availability

10001147	332.63228 HUL o 7th	RLC MM (Rak Buku Umum)	Available
10001149	332.63228 HUL o 7th (1)	RLC MM (Rak Buku Umum)	Available

Detail Information

Series Title

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Statement of Responsibility

John C. Hull

Call Number

332.63228 HUL o 7th

Publisher

New Jersey : Pearson., 2009

Collation

xxii, 814 p. : ill ; 25cm.

Language

English

ISBN/ISSN

978-0-13-500944-9

Classification

332.63228

Content Type

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Edition

7th. ed.

Subject(s)

Buku Umum
Finance
Economics
Investing

Specific Detail Info

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