Download or read book The Dangers of Complex Investments Risk Management in Derivatives Trading with short problems calculated answers and explanations written by Cynthia Obiri and published by Lulu.com. This book was released on 2013-01-02 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the dangers of derivatives and focuses on AIG's recent issues. The book also includes several short derivatives problems with calculated answers and a step by step guide.
Download or read book Risk Management Speculation and Derivative Securities written by Geoffrey Poitras and published by Academic Press. This book was released on 2002-06-10 with total page 628 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presenting an integrated explanation of speculative trading and risk management from the practitioner's point of view, "Risk Management, Speculation, and Derivative Securities" is a standard text on financial risk management that departs from the perspective of an agent whose main concerns are pricing and hedging derivatives.
Download or read book Managing Derivative Risks written by Lillian Chew and published by Wiley. This book was released on 1996-07-24 with total page 332 pages. Available in PDF, EPUB and Kindle. Book excerpt: Managing Derivative Risks The Use and Abuse of Leverage Lillian Chew When Barings, the oldest merchant bank in the United Kingdom, collapsed it joined the long list of financial disasters that have involved derivatives. Procter & Gamble, Metallgesellschaft and Orange County have all fallen famously foul of these instruments. But are they really so dangerous? Promoters of derivatives rightly argue that they provide a service, helping to manage risk in increasingly volatile markets. Where large losses have occurred, it is because derivatives have been misused through greed, a lack of understanding of their risks and the failure of management to control properly those who deal in them, or all three. This book cuts through the hysteria and hype and explains in non-technical terms the unique risks of derivatives. These risks are discussed using actual examples, particularly the high-profile cases of the early 1990s. Managing Derivative Risks also discusses topical issues such as Value at Risk and the latest Bank for International Settlements’ capital requirements for market risk. It will prove a valuable source of information for finance directors, treasurers, institutional investors, fund managers, bankers, regulators, and anyone who sits on a corporate board.
Download or read book The Risk of Investment Products written by Michael Chak Sham Wong and published by World Scientific. This book was released on 2011 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the aftermath of the financial crisis of 2008, many financial institutions have been exploring new methods to measure investment product risk. Lawmakers have been developing new rules that protect investors better than before. The purpose is to mitigate the risk of financial institutions that distribute investment products to their clients. This book presents professional views on investment product risk and analyzes complex investment product risk from various perspectives. Contributed by lawyers, risk managers, IT engineers and scholars, this book is an essential-read for financial regulators, bankers, investment advisors, financial engineers, risk managers, students and researchers.
Download or read book Global Derivative Debacles written by Laurent L. Jacque and published by World Scientific. This book was released on 2010 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: Should derivatives be feared as financial weapons of mass destruction or hailed as financial innovations which through efficient risk transfer are truly adding to the Wealth of Nations? By presenting a factual analysis of how the malpractice of derivatives played havoc with derivative end-user and dealer institutions, a case is made for vigilance not only to market and counter-party risk but also operational risk in their use for risk management and proprietary trading.Clear and recurring lessons across the different stories call not only for tighter but also smarter control system of derivatives trading and should be of immediate interest to financial managers, bankers, traders, auditors and regulators who are directly or indirectly exposed to financial derivatives.The book groups cases by derivative category, starting with the simplest and building up to the most complex namely, Forwards, Futures, Options and Swaps in that order, with applications in commodities, foreign exchange, stock indices and interest rates. Each chapter deals with one derivative debacle, providing a rigorous and comprehensive but non-technical elucidation of what happened.
Download or read book Introduction to Derivative Securities Financial Markets and Risk Management an Third Edition written by Robert A Jarrow and published by . This book was released on 2024-07-06 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The third edition updates the text in two significant ways. First, it updates the presentation to reflect changes that have occurred in financial markets since the publication of the 2nd edition. One such change is with respect to the over-the-counter interest rate derivatives markets and the abolishment of LIBOR as a reference rate. Second, it updates the theory to reflect new research related to asset price bubbles and the valuation of options. Asset price bubbles are a reality in financial markets and their impact on derivative pricing is essential to understand. This is the only introductory textbook that contains these insights on asset price bubbles and options.
Download or read book Managing and Disclosing Risks of Investing in Derivatives written by Meredith Brown and published by Springer. This book was released on 1996-08-06 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a practical handbook of key issues relating to investing in derivatives, both from the point of view of customers who purchase and use derivative products, and from the point of view of banks and other dealers. Among the topics discussed by leading regulators and practitioners in major markets--the United States, the United Kingdom and France--are: risks from using and not using derivatives the disclosures that dealers should make to customers whether derivatives are securities what disclosures should be made by users to their shareholders suits by users against dealers what directors of users should know about derivatives This handbook provides an excellent practical introduction to derivatives for company and securities lawyers, bankers and bank lawyers and corporate finance officers.
Download or read book RISK MANAGEMENT AND DERIVATIVES written by Dr. Abhijit Gajghate I Dr. Mukul A. Burghate and published by mukul burghate. This book was released on with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: The entire scope of financial decision making centres on the trade-off between risk and return. Decision making of any kind involves both positive and negative aspects. The objective of an investment decision is to get required rate of return with minimum risk. To achieve this objective, various instruments, practices and strategies have been devised and developed in the recent past. With the opening of boundaries for international trade and business, the world trade gained momentum in the last decade, the world has entered into a new phase of global integration and liberalisation. To overcome the risk arising out of these fluctuating variables and increased dependence of capital markets of one set of countries to the others, risk management practices have also been reshaped by inventing such instruments as can mitigate the risk element. These new popular instruments are known as financial derivatives which, not only reduce financial risk but also open us new opportunity for high risk takers. It is in this context, a Study Material on introduction to the subject ‘RISK MANAGEMENT AND DERIVATIVES’ is presented to the students of Professional Post-Graduate MBA degree. The book contains the syllabus from basics of the subjects going into the intricacies of the subjects. All the concepts have been explained with relevant examples and diagrams to make it interesting for the readers. An attempt is made here by the author to assist the students by way of providing Study Material as per the curriculum with non-commercial considerations. However, it is implicit that these are exam-oriented Study Material and students are advised to attend regular class room classes in the Institute and utilize reference books available in the library for In-depth knowledge. We owe to many websites and their free contents; we would like to specially acknowledge contents of website www.wikipedia.com and various authors whose writings formed the basis for this book. We acknowledge our thanks to them. At the end we would like to say that there is always a room for improvement in whatever we do. We would appreciate any suggestions regarding this study material from the readers so that the contents can be made more interesting and meaningful. Readers can email their queries and doubts to our authors on [email protected]. We shall be glad to help you immediately.
Download or read book Managing Derivatives Risk written by Dimitris N. Chorafas and published by McGraw Hill Professional. This book was released on 1995 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite recent criticism, the derivatives market has continued to boom. This wake-up call has reminded investors that derivatives do not eliminate risk, they simply divert it. And as with any risk-bearing instrument, effective risk management is critical. Managing Derivatives Risk by Dimitris N. Chorafas is the first book to focus solely on the risk of derivative instruments themselves and provides working solutions for the management of the derivatives portfolio. Based on the experience of investment banks and capital markets firms throughout the world, Managing Derivatives Risk addresses itself to the challenges that derivatives risk management presents and on the established methods of facing them.
Download or read book Risk Management of Financial Derivatives written by Barry Leonard and published by DIANE Publishing. This book was released on 1999-06 with total page 197 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides a framework for evaluating the adequacy of risk management practices of derivative dealers and end-users. More technical information on the various aspects of derivatives risk management, such as evaluating statistical models, is available in the appendix. Separate examination procedures, internal control questions, and verification procedures are provided for dealers and end-users. The examination procedures are designed to be comprehensive. These guidelines and procedures focus principally on off-balance-sheet derivatives and structured notes.
Download or read book Risk Of Investment Products The From Product Innovation To Risk Compliance written by Michael Chak Sham Wong and published by World Scientific. This book was released on 2011-07-29 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the aftermath of the financial crisis of 2008, many financial institutions have been exploring new methods to measure investment product risk. Lawmakers have been developing new rules that protect investors better than before. The purpose is to mitigate the risk of financial institutions that distribute investment products to their clients. This book presents professional views on investment product risk and analyzes complex investment product risk from various perspectives. Contributed by lawyers, risk managers, IT engineers and scholars, this book is an essential-read for financial regulators, bankers, investment advisors, financial engineers, risk managers, students and researchers.
Download or read book Powering the Digital Economy Opportunities and Risks of Artificial Intelligence in Finance written by El Bachir Boukherouaa and published by International Monetary Fund. This book was released on 2021-10-22 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Download or read book The Worst Types Of Derivatives To Invest In Buying Why You Should Not Invest In Buying Derivatives The Problems With Investing In Buying Derivatives How To Find A Worthwhile Derivative Investment And How To Generate Wealth On Social Media Platforms written by Dr Harrison Sachs and published by . This book was released on 2021-04-23 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: This essay sheds light on the worst types of derivatives to invest in buying, explicates why you should not invest in buying derivatives, demystifies the problems with investing in buying derivatives, and expounds upon how to find a worthwhile derivative investment. Furthermore, how to generate extreme wealth online on social media platforms by profusely producing ample lucrative income generating assets is elucidated in this essay. Additionally, the utmost best income generating assets to create for generating extreme wealth online in the digital era are identified, how to become a highly successful influencer online on social media platforms is elucidated, and the plethora of assorted benefits of becoming a successful influencer online are revealed in this essay. Moreover, how to attain extreme fame leverage is demystified and how to earn substantial money online so that you afford to eminently enrich every aspect of your life is meticulously expounded upon in this essay. When cherry picking a derivative to invest in buying, it can be eminently overwhelming to ascertain which particular derivative investment is apt to yield the highest return on investment overtime from its capital gains. A derivative is a financial "contract between two or more parities. The derivative derives its price from fluctuations in the underlying asset. Underlying asset for derivatives encompass stocks, bonds, commodities, currencies, interest rates, and market indexes". Derivative are able to be exchange traded or can trade over-the-counter. Investors invest in buying derivatives for multiple purposes, such as for the purposes of "hedging a position, speculating on the directional movement of an underlying asset, or giving leverage to holdings". Investing in buying certain types of derivatives, such as options, for instance can help investors to mitigate against risks. "Options can indeed be eminently useful for the shrewd derivative investor "as a source of leverage and risk hedging. Investors should meticulously understand the implications associated with entering into an options position before buying or selling options. Investing in buying certain types of derivatives can even allow investors to enhance their returns. Investing in buying derivatives, such as a contract for difference, can allow investors to augment their returns. "A contract for difference is an agreement between a buyer and a seller that requires the seller to pay the buyer the spread between the current stock price and value at the time of the contract if that value rises. The contract for difference's purpose is to allow investors to speculate on price movement without having to own the underlying shares". The contract for difference is favorable to investors if the spread is positive "between the current stock price and value at the time of the contract". Novice investors typically abstain from investing in buying derivatives, especially because they are complex investments which are far more suitable for experienced investors to invest in buying. Attempting to meticulously understanding the ample complex facets of the derivatives market, even as an experienced investor, can unequivocally be a brobdingnagian undertaking which is by no means simple to undergo. Most investors are ill-prepared to become shrewd derivative investors and often underestimate the calamitous implications of making imprudent derivative investments. There are an exorbitant amount of disparate types of derivatives to choose from investing in buying which can render the prospect of becoming a derivative investor all the more overwhelming for the novice derivative investor. Some of the ample types of derivatives encompass "options, swaps, and futures/forward contracts". Some of the other types of derivatives include a contracts for difference, stock warrants, and single stock futures. Most investors are acutely unaware about all the disparate types of derivatives that are available to invest in buyi...
Download or read book Analyzing Banking Risk written by Hennie van Greuning and published by World Bank Publications. This book was released on 2009-03-31 with total page 442 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive overview of topics focusing on assessment, analysis, and management of financial risks in banking. The publication emphasizes risk-management principles and stresses that key players in the corporate governance process are accountable for managing the different dimensions of financial risk. This third edition remains faithful to the objectives of the original publication. A significant new edition is the inclusion of chapters on the management of the treasury function. Advances made by the Basel Committee on Banking Supervision are reflected in the chapters on capital adequacy, transparency, and banking supervision. This publication should be of interest to a wide body of users of bank financial data. The target audience includes persons responsible for the analysis of banks and for the senior management or organizations directing their efforts.
Download or read book Measuring and Managing Derivative Market Risk written by David Emrus Lawrence and published by . This book was released on 1996 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent well-publicised losses on the derivatives markets have highlighted the need for a much closer understanding of the price risk involved, not just among the specialists but at all levels within financial institutions and end-user companies. This timely book sets out a clear, logical approach to the measurement of price risk positions using the techniques of factor sensitivity analysis and 'value at risk', illustrated with straightforward numerical examples. It will be an essential guide to a key area of risk management.
Download or read book Derivatives and Risk Management written by Janakiramanan and published by Pearson Education India. This book was released on 2011 with total page 542 pages. Available in PDF, EPUB and Kindle. Book excerpt: Derivatives and Risk Management provides readers with a thorough knowledge of the functions of derivatives and the many risks associated with their use. It covers particular derivative instruments available in India and the four types of derivatives. It is useful for postgraduate students of commerce, finance and management, fund managers, risk-management specialists, treasury managers, students taking the CFA examinations and anyone who wants to understand the derivatives market in India.
Download or read book Derivatives and Risk Management written by Madhumathi and published by Pearson Education India. This book was released on 2011 with total page 542 pages. Available in PDF, EPUB and Kindle. Book excerpt: Through the incorporation of real-life examples from Indian organizations, Derivatives and Risk Management provides cutting-edge material comprising new and unique study tools and fresh, thought-provoking content. The organization of the text is designed to conceptually link a firm’s actions to its value as determined in the derivatives market. It addresses the specific needs of Indian students and managers by successfully blending the best global derivatives and risk management practices with an in-depth coverage of the Indian environment.
