Derivatives and risk management

"This text takes a modern approach to the subject, discusses the traditional as well as emerging models,focuses on intuitive analysis but not at the expense of essential math, and gives a succinct appraisal of the derivatives environment in India and the world. The author takes Risk Neutral Valuation as the central theme of the book. As a future fund and investment manager, the MBA Finance student must have a good idea of the risks which his or her firm would be exposed to and how to use derivatives creatively and analytically to mitigate that risk. Key Features: Text organization : The coverage of DRM is in 22 chapters,each dwelling on a particular topical theme. These topics range from derivative instruments, derivatives markets and market dynamics to models,methodologies and strategies pertaining to derivatives as well as risk management. Risk neutral valuation: This book is based on the idea that by using risk neutral valuation as the central theme,it is possible to understand a great deal about option valuation without knowing too much about diffusion processes and Ito's lemma. Integration of derivatives with risk management-The case studies: This text gives equal importance to derivatives and to risk management. Risk management is a much broader field than derivatives and involves several different perspectives that are strategic in nature. "Global-local" context: In the context of the increasing global openness of Indian financial markets,this book includes an adequate coverage of the world's leading derivative markets while also providing material specific to the Indian."