An introduction to derivative securities, financial markets and risk management

Written by two of the most distinguished finance scholars in the industry, this introductory textbook on derivatives and risk management is highly accessible in terms of the concepts as well as the mathematics.

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
Beginning at a level that is comfortable to lower division college students, the book gradually develops the content so that its lessons can be profitably used by business majors, arts, science, and engineering graduates as well as MBAs who would work in the finance industry.

Supplementary materials are available to instructors who adopt this textbook for their courses. These include:

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!

(https://www.worldscientific.com/worldscibooks/10.1142/y0018#t=aboutBook)