Understanding Derivatives: What You Really Need to Know About the Wild Card of International Finance (Financial Times Series) Book

Why are so many corporate treasuries making the headlines by looking more like casinos than risk-management centres? Derivatives are the financial instruments and investments of the future and yet few financial innovations have generated such opportunity and widespread controversy. To those who understand them, derivatives represent highly effective tools for managing financial risk or speculative investment. To the uninitiated however, they can appear volatile packages of unquantified risk designed by rocket-scientists and used by businesses and investors at their peril. The key to success lies in a sound understanding of the nature of derivatives and their application. 'Understanding Derivatives' will demystify the products and the markets, the risks and rewards. This practical and highly readable guide gives you the understanding you need to tackle derivatives with confidence and minimize the risks. This book 1) Removes the mystique from the most notorious sector in the world of finance 2) Explains the various types of derivative, how they are constructed and how they operate 3) Shows how to assess and manage the downside risks and implement the right derivative strategies 4) Examines the future for these esoteric instruments and the implications of regulation.Read More