Derivatives and Risk Management

Contents

Preface

PART 1 – BASIC PRINCIPLES OF DERIVATIVES

1. Risk Management with Derivatives

1.1 Introduction

1.2 Market Risk and Economic Stability

1.3 Types of Risks and Risk Management Practices of Firms

1.3.1 Types of risks

1.3.2 Operating risk

1.3.3 Financial risk

1.3.4 Systems risk

1.3.5 Event risk

1.3.6 Active and passive hedging strategies

1.4 Benefits of Hedging

1.5 Hedging Tools

1.6 Trading in Derivatives

1.7 Derivative Instruments as Investments

1.8 Scope and Limitations

Chapter Summary

Key Terms

Discussion Questions

Case for Analysis

Suggested Readings

2. Derivative Markets

2.1 Introduction

2.2 Development of Derivative Markets

2.3 Derivative Markets in India

2.3.1 Economic impact of derivative markets

2.3.2 Commodity derivatives ...