Product Description

The book is a step–by–step guide to derivative products. By distilling the complex mathematics and theory that underlie the subject, Chisholm explains derivative products in straightforward terms, focusing on applications and intuitive explanations wherever possible. Case studies and examples of how the products are used to solve real–world problems, as well as an extensive glossary and material on the latest derivative products make this book a must have for anyone working with derivative products.

Product Details

• Amazon Sales Rank: #21401 in Books
• Published on: 2004-06-18
• Original language: English
• Number of items: 1
• Binding: Paperback
• 250 pages

From the Inside Flap
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.

Thoroughly up–to–date, the author includes explanations of later–generation products such as barrier options, cliquets and choosers.  There are also sections on credit default and equity swaps and there are full chapters devoted to convertible and exchangeable bonds and to structured products such as equity–linked notes and bonds issued through synthetic securitization.  The final chapter has information on the financial calculations that underpin the derivatives market, for those who wish to explore this topic.

From the Back Cover
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.

Thoroughly up–to–date, the author includes explanations of later–generation products such as barrier options, cliquets and choosers. There are also sections on credit default and equity swaps and there are full chapters devoted to convertible and exchangeable bonds and to structured products such as equity–linked notes and bonds issued through synthetic securitization. The final chapter has information on the financial calculations that underpin the derivatives market, for those who wish to explore this topic.

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.

About the Author
Andrew M. Chisholm has designed, developed and taught programmes in derivatives and finance since 1984. In that time he has worked with many of the largest financial institutions around the world, teaching corporate financiers, traders, sales and marketing staff, risk managers, analysts, fund managers, operations and technology professionals. He has worked extensively on seminars at senior management level as well as training programmes designed to introduce new graduate and MBA entrants to the securities industry. He was formerly Head of Professional Development for Europe at JP Morgan and is author of An Introduction to Capital Markets published by John Wiley & Sons in 2002.

Customer Reviews

Brilliant and clear introduction
This is a really good introduction to derivative products. I have tried a lot of other books in this field and ended up thinking that they were far too complicated and obscure. This book is written in a very clear and simple way, and finally I have a real understanding of what is going on derivative products, a subject I need to understand for my job in banking.

Excellent
I have not yet completed this book - however, as someone outside of finance wanting to bridge a gap of knowledge in this area, I found this book to be the only one written in a clear and concise manner.

I've only had to re-read a couple of early sections to get over confusion and in the main found most topics sunk in pretty quickly.

In terms of pages for money, it's expensive. However, I'd rather pay for this and understand what's going on than have a 1000 page monster that serves as nothing more than confusion.

Would highly recommend this to anyone wishing to get an understand of derivatives and it's associated products. The fundamentals are actually clear once they sink in and you soon see how they relate to trading in the real world.

Does exactly what it says in the title
This book cuts through the jargon and the mystique surrounding derivatives. It explains the essentials in a very simple and intuitive way, with lots of examples and cases. The writing style is very polished. I would strongly recommend it to people working in banking and financial services generally. It would also serve as a good introductory text on options and derivatives for students.