INTRODUCTION TO DERIVATIVE SECURITIES, FINANCIAL MARKETS, AND RISK MANAGEMENT, AN (SECOND EDITION)

With its economics perspective, this rewritten and streamlined second edition textbook, is closely connected to real markets, and:

• Shows how macroeconomic forces have shaped the markets
• Explains the major derivative pricing models using algebra and introductory calculus
• Shows students how to implement these models using basic statistics and elementary Excel spreadsheet skills
• Discusses the uses of derivatives while warning against their abuses
• Presents hard-to-teach interest rate derivatives in an intuitive manner
Presents the Heath Jarrow Morton model, which is the most advanced derivatives pricing model, in an accessible manner by presenting it side-by-side with classical option pricing theory

• Solutions Manual with detailed solutions to nearly 500 end-of-chapter questions and problems
• PowerPoint slides and a Test Bank for adopters
• PRICED! In line with current teaching trends, we have woven spreadsheet applications throughout the text. Our aim is for students to achieve self-sufficiency so that they can generate all the models and graphs in this book via a spreadsheet software, Priced!

Readership: Undergraduate and graduate students of economics, business, arts, science and engineering, and MBAs who would work in the finance industry.