Skilled investors know that to play in today's high-risk global-investment environment, they must maximize return while hedging risk. To do this successfully, investors must understand the intricacies and nuances of a myriad of investment vehicles, many relatively new to the investment arena. In Derivative Securities: The Complete Investor's Guide, two renowned experts show how a unified approach to derivatives that pays equal attention to options and futures pricing in both theory and practice, allows the investor to achieve his or her goals. Particular attention is paid to the issue of credit risk in pricing and the crucial function of risk management.

Derivative Securities: The Complete Investor's Guide

Business & Money

Robert Jarrow

Stuart Turnbull

Economics

South-Western College Pub.

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

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:
<ul>
<li>Shows how macroeconomic forces have shaped the markets</li> <li>Explains the major derivative pricing models using algebra and introductory calculus</li> <li>Shows students how to implement these models using basic statistics and elementary Excel spreadsheet skills</li> <li>Discusses the uses of derivatives while warning against their abuses</li> <li>Presents hard-to-teach interest rate derivatives in an intuitive manner</li> 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 </ul> 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. Readership: Undergraduate and graduate students of economics, business, arts, science and engineering, and MBAs who would work in the finance industry.

Arkadev Chatterjea

Finance

World Scientific US

The Economic Foundations of Risk Management presents the theory, the practice, and applies this knowledge to provide a forensic analysis of some well-known risk management failures. By doing so, this book introduces a unified framework for understanding how to manage the risk of an individual's or corporation's or financial institution's assets and liabilities. The book is divided into five parts. The first part studies the markets and the assets and liabilities that trade therein. Markets are differentiated based on whether they are competitive or not, frictionless or not (and the type of friction), and actively traded or not. Assets are divided into two types: primary assets and financial derivatives. The second part studies models for determining the risks of the traded assets. Models provided include the Black-Scholes-Merton, the Heath-Jarrow-Morton, and the reduced form model for credit risk. Liquidity risk, operational risk, and trading constraint models are also contained therein. The third part studies the conceptual solution to an individual's, firm's, and bank's risk management problem. This formulation involves solving a complex dynamic programming problem that cannot be applied in practice. Consequently, Part IV investigates how risk management is actually done in practice via the use of diversification, static hedging, and dynamic hedging. Finally, Part V applies these collective insights to six case studies, which are famous risk management failures. These are Penn Square Bank, Metallgesellschaft, Orange County, Barings Bank, Long Term Capital Management, and Washington Mutual. The credit crisis is also discussed to understand how risk management failed for many institutions and why. Readership: Graduate students and researchers interested in the topic of risk management.

ECONOMIC FOUNDATIONS OF RISK MANAGEMENT, THE: THEORY, PRACTICE, AND APPLICATIONS

World Scientific Publishing Co.

See the best price to sell, buy, or rent books by Robert Jarrow. BookScouter helps to compare book prices from 25+ online bookstores and 30+ buyback vendors with a single search.

Books by Robert Jarrow