June 2013
Intermediate to advanced
768 pages
21h 54m
English
Content preview from Financial Times Handbook of Financial Engineering, The, 3rd Edition
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16
APPLICATIONS FOR FINANCIAL ENGINEERING
16.1 Applications of financial engineering
16.2 Sources of financial risk
16.3 Accounting and economic risk
16.4 Defining hedging objectives
16.5 Measuring hedge efficiency
16.6 The finance division as a profit centre
This chapter sets out the main applications where financial engineering techniques may profitably be employed. One use in particular – hedging – is explored in greater depth, reviewing the sources of financial risk, setting hedging objectives and measuring hedge efficiency. A final section discusses whether a company’s finance division should act merely as a service for other parts of the company, or whether it should be counted as a profit centre in its own right.
16.1 Applications ...
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