What Is a Variance Swap?

This book comprehensively introduces almost all kinds of financial products in the real world, and explains in detail how to use these innovative financial products to manage various financial risks. Whether you are an experienced hedge fund manager or a newbie just entering the financial markets, all you need to know about how to minimize financial risks and how to apply theory to practice are in this encyclopedic "Financial Engineering" There is a comprehensive and systematic introduction. The first part of the book introduces important financial engineering tools: interest rate forwards, futures, swaps, and options. The second part describes the use of various tools to manage exchange rate risk, interest rate risk, stock price risk, futures risk and credit risk. These tools can be used individually or in combination. The book uses a large number of examples to explain the use of financial instruments in practice. This book also details a series of new topics emerging in the financial world, such as overnight swap index discounting, SEFs, finite difference pricing, etc .; also in-depth on exotic options, volatility surfaces, delta hedging and various swaps Introduction. This book lets readers understand the latest changes and development trends in financial markets. This is a must-have reference book for those who are preparing to enter the financial field or already working in this field.

Financial Engineering-Managing Risk with Derivatives (Third Edition)

Financial Engineering-Managing Risk with Derivatives (Third Edition)

• Series: Classic Photocopying Series in Finance

• Shop price: 90.00 RMB

• ISBN: ISBN978-7-307-12524-7

• Edition: 1-1

• Number of pages: 705

• Thousands of words: 1163

• Folio: 16

• Binding method: Paperback

• Author :( English) with glitz; Peng Hongfeng translation

• Editor-in-chief: Fan Xuquan

• Publisher: Wuhan University Press

• Publication time: 2016-01-01

• Printing time: 2016-01-01

This book comprehensively introduces almost all kinds of financial products in the real world, and explains in detail how to use these innovative financial products to manage various financial risks. Whether you are an experienced hedge fund manager or a newbie just entering the financial markets, all you need to know about how to minimize financial risks and how to apply theory to practice are in this encyclopedic "Financial Engineering" There is a comprehensive and systematic introduction. The first part of the book introduces important financial engineering tools: interest rate forwards, futures, swaps, and options. The second part describes the use of various tools to manage exchange rate risk, interest rate risk, stock price risk, futures risk and credit risk. These tools can be used individually or in combination. The book uses a large number of examples to explain the use of financial instruments in practice. This book also details a series of new topics emerging in the financial world, such as overnight swap index discounts, SEFs, finite difference pricing, etc .; also in-depth research on exotic options, volatility surfaces, delta hedging, and various swaps Introduction. This book lets readers understand the latest changes and development trends in financial markets. This is a must-have reference book for those who are preparing to enter the financial field or already working in this field. ^[2]

About the author Acknowledgements Publishers Acknowledgements The second edition of the preface The third edition of the preface The first part of the tool 1 Introduction 1.1 The history of financial engineering development in the past 40 years 1.2 What is financial engineering?
1.3 Risk attributes 1.4 Financial engineering and risk 1.5 Book structure 2 Spot market 2.1 Financial market overview 2.2 Foreign exchange market 2.3 Currency market 2.4 Bond market 2.5 Equity market 2.6 Commodity market 2.7 Spot instruments and derivatives 2.8 Capital adequacy ratio requirements 3 Forward exchange rates and Forward rates 3.1 Forward exchange rates 3.2 Forward rates 3.3 Can forward rates predict future spot rates?
3.4 Spot and forward interest rate practice 4 Forward interest rate agreement 4.1 Introduction to forward rate agreement 4.2 Definition of forward rate agreement 4.3 Terms of forward rate agreement 4.4 Delivery process 4.5 Hedging with forward rate agreement 4.6 Forward rate agreement pricing 4.7 Forward Comparative static analysis of interest rates 5 Financial futures 5.1 A brief history of futures market development 5.2 Introduction to financial futures 5.3 Futures trading-from manual trading to electronic trading 5.4 Buyers and sellers of futures 5.5 Settlement mechanism 5.6 Futures deposits 5.7 Physical delivery and cash settlement 5.8 Futures and Comparison of the spot market 5.9 Advantages of futures 6 Short-term interest rate futures ^[3]

6.1 Definitions 6.2 Pricing of short-term interest rate futures contracts 6.3 Basis 6.4 Convergence of spot and futures prices 6.5 Comparison of futures prices Static analysis 6.6 Hedging examples 6.7 Comparison of short-term futures contracts 6.8 Comparison of futures and forward interest rate agreements 6.9 Spread positions 7 Treasury bonds and stock indexes Futures 7.1 Definition of treasury futures 7.2 Cheapest delivery bonds 7.3 Pricing of treasury futures based on the spot holding method 7.4 Implied repo rate 7.5 Delivery mechanism 7.6 Hedging of treasury futures 7.7 Stock index and stock index futures 7.8 Stock index futures contract definition 7.9 Stock index futures advantages 7.10 Pricing of stock index futures by spot holding method 7.11 Stock index futures practice 7.12 Money market and stock index futures market investment strategies 8 Swap 8.1 Interest rate swaps and cross-currency currency swaps 8.2 Development of swap markets 8.3 Interest rate swaps 8.4 Non-standard interest rate swaps Swap 8.5 overnight index swaps 8.6 Cross-currency currency swaps 8.7 Swap applications 8.8 Asset swaps 8.9 Fixed-term swaps and fixed-term government bond swaps ^[3]

8.10 Inflation Swap 8.11 Equity and Dividend Swap 8.12 Commodity Swap 8.13 Volatility and Variance Swap 8.14 Singular Swap 8.15 International Swap and Derivatives Association Text 8.16 Changes in the Derivatives Market after the credit crisis ...
9 Swap pricing 10 Options-Basic knowledge and pricing 11 Options-Volatility and related Greek letters 12 Options-From building block analysis to portfolio construction 13 Options-Interest rates and exotic options 14 Credit derivatives introduction 15 Credit Pricing and Credit Index for Default Swap Part 2 Application 16 Financial Engineering Application 17 Managing Currency Risk 18 Using Forward Rate Agreements, Futures and Swap to Manage Interest Rate Risk 19 Using Options and Option Tools to Manage Interest Rate Risk 20 Equity Risk Management 21 Commodity risk management 22 Credit risk management 23 Structured product index ^[3]