Derivatives markets continue to grow at a rapid rate, withthousands of new products or product variations being introducedevery year. In order to make sense of this dynamic environment youneed a firm understanding of derivative contract valuation and riskmanagement as well as the structure of the markets within whichthey trade.

Author Robert Whaley has more than twenty-five years ofexperience in the world of finance, and with this book he shareshis hard-won knowledge in the field of derivatives with you.Divided into ten information-packed parts, Derivatives will showyou how this financial tool can be used in practice to create riskmanagement, valuation, and investment solutions that areappropriate for a variety of market situations.

Part One provides a broad overview of derivative contracts andthe markets within which they trade
Part Two reviews the basic principles of security valuation andhelps prepare you for the upcoming discussion of derivativecontract valuation and risk measurement
Part Three focuses on the valuation of forward contracts andthe risk management strategies associated with them
Part Four focuses on the valuation of option contracts and therisk management strategies associated with them
With a general valuation/risk measurement framework in hand, you'll then be introduced to derivative contracts in specific assetcategories. The remaining parts (5-9) of this comprehensiveguide are arranged by the nature of the asset underlying thederivatives contract--stocks are discussed first, then stockindexes, currencies, interest rates or bonds, and finally, commodities. In each part, Whaley provides a flavor of the historyof each derivatives market. He also examines any contractidiosyncrasies that may affect valuation principles and exploresspecific risk management strategies/practices as they apply to themarkets for particular asset categories.

Derivatives can be used to manage the different types of risksfaced by individuals, corporations, and governments. But toeffectively implement them takes discipline. Filled with in-depthinsights, practical advice, and a companion website that featuresOPTVAL Excel add-ins and spreadsheets, Derivatives offers valuableguidance on applying this key financial tool to a variety ofreal-world situations.