Essential insights on the various aspects of financialderivativesIf you want to understand derivatives without getting boggeddown by the mathematics surrounding their pricing and valuation,Financial Derivatives is the book for you. Through in-depthinsights gleaned from years of financial experience, Robert Kolband James Overdahl clearly explain what derivatives are and how youcan prudently use them within the context of your underlyingbusiness activities.Financial Derivatives introduces you to the wide range ofmarkets for financial derivatives. This invaluable guide offers abroad overview of the different types of derivatives-futures,options, swaps, and structured products-while focusing on theprinciples that determine market prices. This comprehensiveresource also provides a thorough introduction to financialderivatives and their importance to risk management in a corporatesetting. Filled with helpful tables and charts, FinancialDerivatives offers a wealth of knowledge on futures, options,swaps, financial engineering, and structured products.* Discusses what derivatives are and how you can prudentlyimplement them within the context of your underlying businessactivities* Provides thorough coverage of financial derivatives and theirrole in risk management* Explores financial derivatives without getting bogged down bythe mathematics surrounding their pricing and valuationThis informative guide will help you unlock the incrediblepotential of financial derivatives.

Introduction xxiiAcknowledgments xxivPART I Overview of Financial Derivatives 11 Derivative Instruments: Forwards, Futures, Options, Swaps, andStructured Products 3G. D. Koppenhaver2 The Derivatives Marketplace: Exchanges and theOver-the-Counter Market 21Sharon Brown-Hruska3 Speculation and Hedging 43Greg Kuserk4 The Social Functions of Financial Derivatives 57Christopher L. CulpPART II Types of Financial Derivatives 735 Agricultural and Metallurgical Derivatives: Pricing 77Joan C. Junkus6 Agricultural and Metallurgical Derivatives: Speculation andHedging 89Joan C. Junkus7 Equity Derivatives 103Jeffrey H. Harris and L. Mick Swartz8 Foreign Exchange Derivatives 115Robert W. Kolb9 Energy Derivatives 125Craig Pirrong10 Interest Rate Derivatives 135Ian Lang11 Exotic Options 143Robert W. Kolb12 Event Derivatives 157Justin Wolfers and Eric Zitzewitz13 Credit Default Swaps 177Steven Todd14 Structured Credit Products 199Steven Todd15 Executive Stock Options 211Robert W. Kolb16 Emerging Derivative Instruments 221Steve SwidlerPART III The Structure of Derivatives Markets andInstitutions 23117 The Development and Current State of Derivatives Markets233Michael A. Penick18 Derivatives Markets Intermediaries: Brokers, Dealers, Pools,and Funds 249James L. Carley19 Clearing and Settlement 263James T. Moser and David Reiffen20 Counterparty Credit Risk 283James Overdahl21 The Regulation of U.S. Commodity Futures and Options295Walter L. Lukken22 Accounting for Financial Derivatives 305Ira G. Kawaller23 Derivative Scandals and Disasters 313John E. MarthinsenPART IV Pricing of Derivatives: Essential Concepts33324 No-Arbitrage Pricing 335Robert A. Strong25 The Pricing of Forward and Futures Contracts 351David Dubofsky26 The Black-Scholes Option Pricing Model 371A. G. Malliaris27 The Black-Scholes Legacy: Closed-Form Option PricingModels387António Câmara28 The Pricing and Valuation of Swaps 405Gerald Gay and Anand VenkateswaranPART V Advanced Pricing Techniques 42329 Monte Carlo Techniques in Pricing and Using Derivatives425Cara M. Marshall30 Valuing Derivatives Using Finite Difference Methods 441Craig Pirrong31 Stochastic Processes and Models 455George Chalamandaris and A. G. Malliaris32 Measuring and Hedging Option Price Sensitivities 477R. Brian BalyeatPART VI Using Financial Derivatives 50133 Option Strategies 503Stewart Mayhew34 The Use of Derivatives in Financial Engineering: Hedge FundApplications 525John F. Marshall and Cara M. Marshall35 Hedge Funds and Financial Derivatives 541Tom Nohel36 Real Options and Applications in Corporate Finance 559Betty Simkins and Kris Kemper37 Using Derivatives to Manage Interest Rate Risk 575Steven L. ByersIndex 591