Derivatives and Risk Management (Paperback)

The widespread use of derivative instrumentsconsidered to be one of the main causes of the 2008 financial crisishas not flagged since the global economic meltdown. Contrary to popular belief, the improper use of derivatives, not the nature of derivative securities themselves, caused the collapse of 2008. In India, derivatives were introduced as late as 2000. Today, the National Stock Exchange is the number one trading spot in the world for index futures. The volume of trade of both financial and commodity-related derivatives has increased significantly over the past few years. During this period, the market has witnessed the introduction of several new products designed specifically for India, making it necessary for finance professionals to understand the working of these products in addition to the existing derivativesa need that this book fulfills.

Derivatives and Risk Management provides readers with a thorough knowledge of the functions of derivatives and the many risks associated with their use. Besides discussing the particular derivative instruments available in India, the book concentrates on four types of derivativesforward contracts, futures contracts, swap contracts and options contracts. It is targeted at postgraduate students of commerce, finance and management, and blends theory, problems and cases to introduce the basic concepts in a lucid, engaging manner. It will also be of use to fund managers, risk-management specialists, treasury managers, students taking the CFA examinations and anyone who wants to understand the derivatives market in India.