Fundamentals of Financial Instruments, 2nd Edition

Fundamentals of Financial Instruments, 2nd Edition

by Sunil K. Parameswaran
Released
Publisher(s): Wiley
ISBN: None

Read it now on the O’Reilly learning platform with a 10-day free trial.

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

Start your free trial

Book description

None

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Preface
  6. Preface to the First Edition
  7. Acknowledgments
  8. About the Author
  9. CHAPTER 1: An Introduction to Financial Institutions, Instruments, and Markets
    1. THE ROLE OF AN ECONOMIC SYSTEM
    2. A COMMAND ECONOMY
    3. A MARKET ECONOMY
    4. CLASSIFICATION OF ECONOMIC UNITS
    5. AN ECONOMY'S RELATIONSHIP WITH THE EXTERNAL WORLD
    6. THE BALANCE OF TRADE
    7. THE CURRENT ACCOUNT BALANCE
    8. FINANCIAL ASSETS
    9. MONEY
    10. MONEY AS A UNIT OF ACCOUNT OR A STANDARD OF VALUE
    11. MONEY AS A MEDIUM OF EXCHANGE
    12. MONEY AS A STORE OF VALUE
    13. MONEY IS PERFECTLY LIQUID
    14. EQUITY SHARES
    15. DEBT SECURITIES
    16. PREFERRED SHARES
    17. FOREIGN EXCHANGE
    18. DERIVATIVES
    19. FORWARD AND FUTURES CONTRACTS
    20. OPTIONS CONTRACTS
    21. SWAPS
    22. MORTGAGES AND MORTGAGE-BACKED SECURITIES
    23. HYBRID SECURITIES
    24. PRIMARY MARKETS AND SECONDARY MARKETS
    25. EXCHANGES AND OVER-THE-COUNTER (OTC) MARKETS
    26. BROKERS AND DEALERS
    27. THE NEED FOR BROKERS AND DEALERS
    28. TRADING POSITIONS
    29. THE BUY-SIDE AND THE SELL-SIDE
    30. INVESTMENT BANKERS
    31. DIRECT AND INDIRECT MARKETS
    32. MUTUAL FUNDS
    33. MONEY AND CAPITAL MARKETS
    34. THE EUROCURRENCY MARKET
    35. THE INTERNATIONAL BOND MARKET
    36. GLOBALIZATION OF EQUITY MARKETS
    37. DUAL LISTING
    38. FUNGIBILITY
    39. ARBITRAGE
    40. ARBITRAGE WITH ADRs
    41. GDRs
    42. RISK
    43. AFTER THE TRADE – CLEARING AND SETTLEMENT
    44. DEMATERIALIZATION AND THE ROLE OF A DEPOSITORY
    45. CUSTODIAL SERVICES
    46. GLOBALIZATION – THE NEW MANTRA
    47. NOTES
  10. CHAPTER 2: Mathematics of Finance
    1. INTEREST RATES
    2. THE REAL RATE OF INTEREST
    3. THE FISHER EQUATION
    4. SIMPLE INTEREST & COMPOUND INTEREST
    5. PROPERTIES
    6. A SYMBOLIC DERIVATION
    7. PRINCIPLE OF EQUIVALENCY
    8. CONTINUOUS COMPOUNDING
    9. FUTURE VALUE
    10. PRESENT VALUE
    11. HANDLING A SERIES OF CASH FLOWS
    12. THE INTERNAL RATE OF RETURN
    13. EVALUATING AN INVESTMENT
    14. ANNUITIES: AN INTRODUCTION
    15. ANNUITY DUE
    16. PERPETUITIES
    17. THE AMORTIZATION METHOD
    18. AMORTIZATION WITH A BALLOON PAYMENT
    19. THE EQUAL PRINCIPAL REPAYMENT APPROACH
    20. TYPES OF INTEREST COMPUTATION
    21. LOANS WITH A COMPENSATING BALANCE
    22. TIME VALUE OF MONEY–RELATED FUNCTIONS IN EXCEL
    23. COMPUTING THE PRESENT AND FUTURE VALUES OF ANNUITIES AND ANNUITIES DUE IN EXCEL
    24. AMORTIZATION SCHEDULES AND EXCEL
    25. NOTE
  11. CHAPTER 3: Equity Shares, Preferred Shares, and Stock Market Indices
    1. INTRODUCTION
    2. PAR VALUE VERSUS BOOK VALUE
    3. ACCOUNTING FOR A STOCK ISSUE
    4. VOTING RIGHTS
    5. DIVIDENDS
    6. TREASURY STOCK
    7. ACCOUNTING FOR TREASURY STOCK
    8. SPLITS AND REVERSE SPLITS
    9. PREEMPTIVE RIGHTS
    10. INTERPRETING STATED RATIOS
    11. HANDLING FRACTIONS
    12. PHYSICAL CERTIFICATES VERSUS BOOK ENTRY
    13. TRACKING STOCK
    14. REPORT CARDS
    15. TYPES OF STOCKS
    16. RISK AND RETURN AND THE CONCEPT OF DIVERSIFICATION
    17. PREFERRED SHARES
    18. DIVIDEND DISCOUNT MODELS
    19. A GENERAL VALUATION MODEL
    20. THE CONSTANT GROWTH MODEL
    21. THE TWO-STAGE MODEL
    22. THE THREE-STAGE MODEL
    23. THE H MODEL
    24. STOCK MARKET INDICES
    25. PRICE-WEIGHTED INDICES
    26. THE IMPORTANCE OF PRICE
    27. VALUE-WEIGHTED INDICES
    28. CHANGING THE BASE PERIOD CAPITALIZATION
    29. EQUALLY WEIGHTED INDICES
    30. TRACKING PORTFOLIOS
    31. HANDLING A RIGHTS ISSUE
    32. THE FREE-FLOATING METHODOLOGY
    33. WELL-KNOWN GLOBAL INDICES
    34. MARGIN TRADING AND SHORT-SELLING
    35. TERMINOLOGY
    36. CASE A: THE MARKET RISES
    37. CASE B: THE MARKET DECLINES
    38. CASE A: THE MARKET RISES
    39. CASE B: THE MARKET DECLINES
    40. INTEREST AND COMMISSIONS
    41. CASE A: THE MARKET RISES
    42. CASE B: THE MARKET DECLINES
    43. MAINTENANCE MARGIN
    44. SHORT-SELLING
    45. MAINTENANCE OF A SHORT POSITION
    46. SHORTING AGAINST THE BOX
    47. THE RISK FACTOR
    48. THE ECONOMIC ROLE OF SHORT SALES
    49. THE UPTICK RULE
    50. NOTES
  12. CHAPTER 4: Bonds
    1. INTRODUCTION
    2. TERMS USED IN THE BOND MARKET
    3. VALUATION OF A BOND
    4. PAR, PREMIUM, AND DISCOUNT BONDS
    5. EVOLUTION OF THE PRICE
    6. ZERO-COUPON BONDS
    7. VALUING A BOND IN BETWEEN COUPON DATES
    8. DAY-COUNT CONVENTIONS
    9. ACTUAL-ACTUAL
    10. THE TREASURY'S APPROACH
    11. CORPORATE BONDS
    12. ACCRUED INTEREST
    13. NEGATIVE ACCRUED INTEREST
    14. YIELDS
    15. THE CURRENT YIELD
    16. SIMPLE YIELD TO MATURITY
    17. YIELD TO MATURITY
    18. APPROXIMATE YIELD TO MATURITY
    19. ZERO-COUPON BONDS AND THE YTM
    20. ANALYZING THE YTM
    21. THE REALIZED COMPOUND YIELD
    22. REINVESTMENT AND ZERO-COUPON BONDS
    23. THE HOLDING PERIOD YIELD
    24. TAXABLE EQUIVALENT YIELD
    25. CREDIT RISK
    26. BOND INSURANCE
    27. EQUIVALENCE WITH ZERO-COUPON BONDS
    28. SPOT RATES
    29. THE COUPON EFFECT
    30. BOOTSTRAPPING
    31. FORWARD RATES
    32. THE YIELD CURVE AND THE TERM STRUCTURE
    33. SHAPES OF THE TERM STRUCTURE
    34. THEORIES OF THE TERM STRUCTURE
    35. THE LIQUIDITY PREMIUM HYPOTHESIS
    36. THE MONEY SUBSTITUTE HYPOTHESIS
    37. THE MARKET SEGMENTATION HYPOTHESIS
    38. THE PREFERRED HABITAT THEORY
    39. THE SHORT RATE
    40. FLOATING RATE BONDS
    41. SIMPLE MARGIN
    42. BONDS WITH EMBEDDED OPTIONS
    43. CALLABLE BONDS
    44. YIELD TO CALL
    45. PUTABLE BONDS
    46. CONVERTIBLE BONDS
    47. USING SHORT RATES TO VALUE BONDS
    48. PRICE VOLATILITY
    49. A CONCISE FORMULA
    50. DURATION AND PRICE VOLATILITY
    51. PROPERTIES OF DURATION
    52. DOLLAR DURATION
    53. CONVEXITY
    54. A CONCISE FORMULA
    55. DOLLAR CONVEXITY
    56. PROPERTIES OF CONVEXITY
    57. IMMUNIZATION
    58. TREASURY AUCTIONS
    59. WHEN ISSUED TRADING
    60. PRICE QUOTES
    61. STRIPS
    62. INFLATION INDEXED BONDS
    63. COMPUTING PRICE GIVEN YIELD AND VICE VERSA IN EXCEL
    64. COMPUTING DURATION IN EXCEL
    65. NOTES
  13. CHAPTER 5: Money Markets
    1. INTRODUCTION
    2. MARKET SUPERVISION
    3. THE FEDERAL RESERVE SYSTEM
    4. KEY DATES IN THE CASE OF CASH MARKET INSTRUMENTS
    5. THE MODIFIED FOLLOWING BUSINESS DAY CONVENTION
    6. THE END/END RULE
    7. THE INTERBANK MARKET
    8. TYPES OF LOANS
    9. LIBOR
    10. LIBID
    11. SONIA
    12. TRANSITIONING FROM LIBOR
    13. INTEREST COMPUTATION METHODS
    14. TERM MONEY MARKET DEPOSITS
    15. MONEY MARKET FORWARD RATES
    16. FEDERAL FUNDS
    17. FEDERAL FUNDS VERSUS CLEARINGHOUSE FUNDS
    18. CORRESPONDENT BANKS: NOSTRO AND VOSTRO ACCOUNTS
    19. TREASURY BILLS
    20. REOPENINGS
    21. YIELDS ON DISCOUNT SECURITIES
    22. NOTATION
    23. DISCOUNT RATES AND T-BILL PRICES
    24. THE BOND EQUIVALENT YIELD (BEY)
    25. CASE A: TM &lt; 182 DAYS < 182 DAYS
    26. THE MONEY MARKET YIELD
    27. CASE B: TM > 182 DAYS
    28. HOLDING PERIOD RETURN
    29. VALUE OF AN 01
    30. CONCEPT OF CARRY
    31. CONCEPT OF A TAIL
    32. T-BILL RELATED FUNCTIONS IN EXCEL
    33. TBILLPRICE
    34. TBILLYIELD
    35. TBILLEQ
    36. DISC
    37. TREASURY AUCTIONS
    38. TYPES OF AUCTIONS
    39. RESULTS OF AN AUCTION
    40. PRIMARY DEALERS AND OPEN MARKET OPERATIONS
    41. REPURCHASE AGREEMENTS
    42. REVERSE REPOS
    43. GENERAL COLLATERAL VERSUS SPECIAL REPOS
    44. MARGINS
    45. SALE AND BUYBACK
    46. COLLATERAL
    47. REPOS AND OPEN MARKET OPERATIONS
    48. NEGOTIABLE CDs
    49. NOTATION
    50. COST OF A CD FOR THE ISSUING BANK
    51. TERM CDs
    52. CDs VERSUS MONEY MARKET TIME DEPOSITS
    53. COMMERCIAL PAPER
    54. LETTERS OF CREDIT AND BANK GUARANTEES
    55. YANKEE PAPER
    56. CREDIT RATING
    57. MOODY'S RATING SCALE
    58. S&P'S RATING SCALE
    59. FITCH'S RATING SCALE
    60. BILLS OF EXCHANGE
    61. DOCUMENTS AGAINST PAYMENT (DAP) VERSUS DOCUMENTS AGAINST ACCEPTANCE (DAA) TRANSACTIONS
    62. ELIGIBLE AND NONELIGIBLE BANK BILLS
    63. BUYING AND SELLING BILLS
    64. BANKERS' ACCEPTANCE
    65. ACCEPTANCE CREDITS
    66. EUROCURRENCY DEPOSITS
    67. APPENDIX
    68. NOTES
  14. CHAPTER 6: Forward and Futures Contracts
    1. INTRODUCTION
    2. MARKING TO MARKET FOR A TRADER IN PRACTICE
    3. DELIVERY OPTIONS
    4. PROFIT DIAGRAMS
    5. VALUE AT RISK
    6. THE EXPECTED SHORTFALL
    7. SPOT-FUTURES EQUIVALENCE
    8. PRODUCTS AND EXCHANGES
    9. CASH-AND-CARRY ARBITRAGE
    10. REVERSE CASH-AND-CARRY ARBITRAGE
    11. REPO AND REVERSE REPO RATES
    12. SYNTHETIC SECURITIES
    13. VALUATION
    14. THE CASE OF ASSETS MAKING PAYOUTS
    15. PHYSICAL ASSETS
    16. NET CARRY
    17. BACKWARDATION AND CONTANGO
    18. THE CASE OF MULTIPLE DELIVERABLE GRADES
    19. RISK ARBITRAGE
    20. THE CASE OF MULTIPLICATIVE ADJUSTMENT
    21. THE CASE OF ADDITIVE ADJUSTMENT
    22. TRADING VOLUME AND OPEN INTEREST
    23. DELIVERY
    24. CASH SETTLEMENT
    25. HEDGING AND SPECULATION
    26. ROLLING A HEDGE
    27. TAILING A HEDGE
    28. THE MINIMUM VARIANCE HEDGE RATIO
    29. ESTIMATION OF THE HEDGE RATIO AND THE HEDGING EFFECTIVENESS
    30. CROSS-HEDGING
    31. SPECULATION
    32. LEVERAGE
    33. CONTRACT VALUE
    34. FORWARD VERSUS FUTURES PRICES
    35. HEDGING THE RATE OF RETURN ON A STOCK PORTFOLIO
    36. CHANGING THE BETA
    37. PROGRAM TRADING
    38. STOCK PICKING
    39. PORTFOLIO INSURANCE
    40. IMPORTANCE OF FUTURES
    41. NOTES
  15. CHAPTER 7: Options Contracts
    1. INTRODUCTION
    2. NOTATION
    3. EXERCISING OPTIONS
    4. MONEYNESS
    5. EXCHANGE-TRADED OPTIONS
    6. OPTION CLASS AND OPTION SERIES
    7. FLEX OPTIONS
    8. CONTRACT ASSIGNMENT
    9. ADJUSTING FOR CORPORATE ACTIONS
    10. NONNEGATIVE OPTION PREMIA
    11. INTRINSIC VALUE AND TIME VALUE
    12. TIME VALUE OF AMERICAN OPTIONS
    13. TIME VALUE AT EXPIRATION
    14. PUT-CALL PARITY
    15. IMPLICATIONS FOR THE TIME VALUE
    16. PUT-CALL PARITY WITH DIVIDENDS
    17. IMPLICATIONS FOR THE TIME VALUE
    18. A VERY IMPORTANT PROPERTY FOR AMERICAN CALLS
    19. EARLY EXERCISE OF OPTIONS: AN ANALYSIS
    20. PROFIT PROFILES
    21. SPECULATION WITH OPTIONS
    22. HEDGING WITH OPTIONS
    23. VALUATION
    24. THE BINOMIAL OPTION PRICING MODEL
    25. THE TWO-PERIOD MODEL
    26. VALUATION OF EUROPEAN PUT OPTIONS
    27. VALUING AMERICAN OPTIONS
    28. IMPLEMENTING THE BINOMIAL MODEL IN PRACTICE
    29. THE BLACK-SCHOLES MODEL
    30. PUT-CALL PARITY
    31. INTERPRETATION OF THE BLACK-SCHOLES FORMULA
    32. THE GREEKS
    33. OPTION STRATEGIES
    34. FUTURES OPTIONS
    35. PUT-CALL PARITY
    36. THE BLACK MODEL
    37. NOTES
  16. CHAPTER 8: Foreign Exchange
    1. INTRODUCTION
    2. CURRENCY CODES
    3. BASE AND VARIABLE CURRENCIES
    4. DIRECT AND INDIRECT QUOTES
    5. EUROPEAN TERMS AND AMERICAN TERMS
    6. BID AND ASK QUOTES
    7. APPRECIATING AND DEPRECIATING CURRENCIES
    8. CONVERTING DIRECT QUOTES TO INDIRECT QUOTES
    9. POINTS
    10. RATES OF RETURN
    11. THE IMPACT OF SPREADS ON RETURNS
    12. ARBITRAGE IN SPOT MARKETS
    13. ONE-POINT ARBITRAGE
    14. TWO-POINT ARBITRAGE
    15. TRIANGULAR ARBITRAGE
    16. CROSS RATES
    17. MARKET RATES AND EXCHANGE MARGINS
    18. VALUE DATES
    19. THE FORWARD MARKET
    20. OUTRIGHT FORWARD RATES
    21. SWAP POINTS
    22. BROKEN-DATED CONTRACTS
    23. COVERED INTEREST ARBITRAGE
    24. A PERFECT MARKET
    25. FOREIGN EXCHANGE SWAPS
    26. THE COST
    27. THE MOTIVE
    28. INTERPRETATION OF THE SWAP POINTS
    29. A CLARIFICATION
    30. SHORT-DATE CONTRACTS
    31. OPTION FORWARDS
    32. NONDELIVERABLE FORWARDS
    33. RANGE FORWARDS
    34. FUTURES MARKETS
    35. HEDGING USING CURRENCY FUTURES
    36. A SELLING HEDGE
    37. A BUYING HEDGE
    38. EXCHANGE-TRADED FOREIGN CURRENCY OPTIONS
    39. SPECULATING WITH FOREX OPTIONS
    40. EXCHANGE RATES AND COMPETITIVENESS
    41. NOTES
  17. CHAPTER 9: Mortgages and Mortgage-backed Securities
    1. INTRODUCTION
    2. MARKET PARTICIPANTS
    3. MORTGAGE ORIGINATION
    4. RISKS IN MORTGAGE LENDING
    5. OTHER MORTGAGE STRUCTURES
    6. PSA PREPAYMENT BENCHMARK
    7. ANALYSIS
    8. EXTENSION RISK AND CONTRACTION RISK
    9. ACCRUAL BONDS
    10. FLOATING RATE TRANCHES
    11. NOTIONAL INTEREST-ONLY TRANCHE
    12. INTEREST-ONLY AND PRINCIPAL-ONLY STRIPS
    13. PAC BONDS
    14. NOTES
  18. CHAPTER 10: Swaps
    1. INTRODUCTION
    2. MARKET TERMINOLOGY
    3. KEY DATES
    4. INHERENT RISK
    5. THE SWAP RATE
    6. ILLUSTRATIVE SWAP RATES
    7. DETERMINING THE SWAP RATE
    8. THE MARKET METHOD
    9. VALUATION OF A SWAP DURING ITS LIFE
    10. TERMINATING A SWAP
    11. THE ROLE OF BANKS IN THE SWAP MARKET
    12. MOTIVATION FOR THE SWAP
    13. COMPARATIVE ADVANTAGE AND CREDIT ARBITRAGE
    14. SWAP QUOTATIONS
    15. MATCHED PAYMENTS
    16. AMORTIZING SWAPS
    17. EXTENDABLE AND CANCELABLE SWAPS
    18. SWAPTIONS
    19. CURRENCY SWAPS
    20. CROSS-CURRENCY SWAPS
    21. VALUATION
    22. CURRENCY RISKS
    23. HEDGING WITH CURRENCY SWAPS
    24. NOTES
  19. CHAPTER 11: Mutual Funds, ETFs, and Pension Funds
    1. INTRODUCTION
    2. PROS AND CONS OF INVESTING IN A FUND
    3. SHARES AND UNITS
    4. OPEN-END VERSUS CLOSED-END FUNDS
    5. PREMIUM/DISCOUNT OF A CLOSED-END FUND
    6. UNIT TRUSTS
    7. CALCULATING THE NAV
    8. COSTS
    9. SALES CHARGES
    10. PRICE QUOTES
    11. ANNUAL OPERATING EXPENSES
    12. SWITCHING FEES
    13. DIVIDEND OPTIONS
    14. TYPES OF MUTUAL FUNDS
    15. MONEY MARKET FUNDS
    16. GILT FUNDS
    17. DEBT FUNDS
    18. DIVERSIFIED DEBT FUNDS
    19. FOCUSED DEBT FUNDS
    20. HIGH YIELD DEBT FUNDS
    21. DEBT FUNDS AND BOND DURATION
    22. EQUITY FUNDS
    23. AGGRESSIVE GROWTH FUNDS
    24. GROWTH FUNDS
    25. SPECIALTY FUNDS
    26. SECTOR FUNDS
    27. OFFSHORE FUNDS
    28. SMALL CAP EQUITY FUNDS
    29. OPTION INCOME FUNDS
    30. FUND OF FUNDS
    31. EQUITY INDEX FUNDS
    32. VALUE FUNDS
    33. EQUITY INCOME FUNDS
    34. BALANCED FUNDS
    35. ASSET-ALLOCATION FUNDS
    36. COMMODITY FUNDS
    37. REAL ESTATE FUNDS
    38. TAX-EXEMPT FUNDS
    39. RISK CATEGORIES
    40. THE PROSPECTUS
    41. STRUCTURE OF A MUTUAL FUND
    42. SERVICES
    43. INVESTMENT TECHNIQUES
    44. THE TOTAL RETURN
    45. COMPUTATION OF RETURNS
    46. TAXATION ISSUES
    47. ALTERNATIVES TO MUTUAL FUNDS
    48. TYPES OF PLANS
    49. IRAs
    50. CASH BALANCE PLANS
    51. NOTE
  20. CHAPTER 12: Orders and Exchanges
    1. IMPORTANT ACRONYMS
    2. MARKET ORDERS AND LIMIT ORDERS
    3. THE LIMIT PRICE
    4. THE LIMIT ORDER BOOKS
    5. ILLUSTRATION OF A LIMIT ORDER BOOK
    6. LIMIT ORDERS VERSUS MARKET ORDERS
    7. MARKETABLE LIMIT ORDERS
    8. TRADE PRICING RULES
    9. STOP-LOSS AND STOP-LIMIT ORDERS
    10. TRAILING STOP-LOSS ORDERS
    11. MARKET TO LIMIT ORDERS
    12. EQUIVALENCE WITH OPTIONS
    13. VALIDITY CONDITIONS
    14. GOOD TILL CANCELED (GTC) ORDERS
    15. GOOD TILL DAYS ORDERS
    16. ORDERS WITH QUANTITY RESTRICTIONS
    17. A POINT ON ORDER SPECIFICATION
    18. OPEN-OUTCRY TRADING SYSTEMS
    19. ELECTRONIC MARKETS VERSUS OPEN-OUTCRY MARKETS
    20. CALL MARKETS
    21. NOTES
  21. CHAPTER 13: The Macroeconomics of Financial Markets
    1. ECONOMIC GROWTH
    2. GROSS DOMESTIC PRODUCT
    3. GDP VERSUS GNP
    4. INFLATION ADJUSTMENT
    5. TRANSNATIONAL COMPARISONS
    6. THE BIG MAC INDEX
    7. INFLATION
    8. TYPES OF INFLATION
    9. INTEREST RATES
    10. THE FEDERAL BUDGET DEFICIT
    11. MEASURES OF BUDGET DEFICITS
    12. THE PRIMARY DEFICIT
    13. FISCAL POLICY
    14. BUDGET DEFICITS AND THE CAPITAL MARKET
    15. THE ROLE OF THE CENTRAL BANK
    16. BUDGET DEFICITS AND MONETARY POLICY
    17. CROSS-BORDER BORROWING
    18. CENTRAL BANKS AND FOREIGN EXCHANGE MARKETS
    19. STERILIZED AND UNSTERILIZED INTERVENTIONS
    20. EXCHANGE RATES
    21. ISSUES WITH A RESERVE CURRENCY
    22. CROSS-BORDER IMPLICATIONS OF CENTRAL BANK ACTIONS
    23. QUANTITATIVE EASING
    24. QUANTITATIVE EASING VERSUS OPEN-MARKET OPERATIONS
  22. CHAPTER 14: Interest Rate Derivatives
    1. FORWARD RATE AGREEMENTS (FRAs)
    2. SETTLING AN FRA
    3. DETERMINING BOUNDS FOR THE FRA RATE
    4. EURODOLLAR FUTURES
    5. CALCULATING PROFITS AND LOSSES ON ED FUTURES
    6. LOCKING IN A BORROWING RATE
    7. LOCKING IN A LENDING RATE
    8. THE NO-ARBITRAGE PRICING EQUATION
    9. CREATING A FIXED-RATE LOAN
    10. 30-YEAR T-BOND FUTURES CONTRACTS
    11. CONVERSION FACTORS
    12. INTEREST RATE OPTIONS
    13. STATE PRICES
    14. CALLABLE AND PUTABLE BONDS
    15. CAPS, FLOORS, AND COLLARS
    16. CAPTIONS AND FLOORTIONS
    17. NOTES
  23. Sources and References
    1. CHAPTER 1
    2. CHAPTER 2
    3. CHAPTER 3
    4. CHAPTER 4
    5. CHAPTER 5
    6. CHAPTER 6
    7. CHAPTER 7
    8. CHAPTER 8
    9. CHAPTER 9
    10. CHAPTER 10
    11. CHAPTER 11
    12. CHAPTER 12
    13. CHAPTER 14
  24. Index
  25. End User License Agreement

Product information

  • Title: Fundamentals of Financial Instruments, 2nd Edition
  • Author(s): Sunil K. Parameswaran
  • Release date:
  • Publisher(s): Wiley
  • ISBN: None