Table of Contents
 
Title Page
Copyright Page
Dedication
Epigraph
Acknowledgements
 
Chapter 1 - The Origins and Growth of the Market
 
DEFINITIONS
DERIVATIVES BUILDING BLOCKS
MARKET PARTICIPANTS
SUPPORTING ORGANIZATIONS
EARLY ORIGINS OF DERIVATIVES
DERIVATIVES IN THE USA
OVERSEAS DEVELOPMENTS, INNOVATION AND EXPANSION
AN EXAMPLE OF RECENT INNOVATION: WEATHER DERIVATIVES
TEMPERATURE-LINKED DERIVATIVES
THE WILD BEAST OF FINANCE?
LESSONS FROM RECENT HISTORY
CREATIVE DESTRUCTION AND CONTAGION EFFECTS
THE MODERN OTC DERIVATIVES MARKET
THE EXCHANGE-TRADED DERIVATIVES MARKET
CHAPTER SUMMARY
 
Chapter 2 - Equity and Currency Forwards
 
INTRODUCTION
EQUITY FORWARD CONTRACT
THE FORWARD PRICE
THE FORWARD PRICE AND ARBITRAGE OPPORTUNITIES
THE FORWARD PRICE AND THE EXPECTED PAYOUT
FOREIGN EXCHANGE FORWARDS
MANAGING CURRENCY RISK
HEDGING WITH AN OUTRIGHT FORWARD FX DEAL
THE FORWARD FOREIGN EXCHANGE RATE
THE FORWARD FX RATE AND ARBITRAGE OPPORTUNITIES
FORWARD POINTS
FX SWAPS
APPLICATIONS OF FX SWAPS
CHAPTER SUMMARY
 
Chapter 3 - Forward Rate Agreements
 
INTRODUCTION
FRA CASE STUDY: CORPORATE BORROWER
RESULTS OF THE FRA HEDGE
THE FRA AS TWO PAYMENT LEGS
DEALING IN FRAs
FORWARD INTEREST RATES
CHAPTER SUMMARY
 
Chapter 4 - Commodity and Bond Futures
 
INTRODUCTION
THE MARGINING SYSTEM AND THE CLEARING HOUSE
USERS OF FUTURES CONTRACTS
COMMODITY FUTURES
FUTURES PRICES AND THE BASIS
US TREASURY BOND FUTURES
US TREASURY BOND FUTURES: DELIVERY PROCEDURES
GILT FUTURES
THE CHEAPEST-TO-DELIVER (CTD) ...

Get Derivatives Demystified: A Step-by-Step Guide to Forwards, Futures, Swaps and Options, Second Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial