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Contents Listing
Preface: The Demonization of Derivatives. Introduction and Structure of the Book. Mathematical Notation. PART ONE: The Economics of Risk Transfer. CHAPTER 1: The Determinants of Financial Innovation. CHAPTER 2: Risk, Uncertainty, and Profit. CHAPTER 3: Methods of Controlling Risk and Uncertainty. CHAPTER 4: Risk Transfer and Contracting Structures. CHAPTER 5: The Evolution of Derivatives Activity. CHAPTER 6: Derivatives Trading, Clearance, and Settlement. PART TWO: Derivatives Valuation and Asset Lending. CHAPTER 7: Principles of Derivatives Valuation. CHAPTER 8: Own Rates of Interest and the Cost of Carry Model. CHAPTER 9: The Supply of Storage and the Term Structure of Forward Prices. CHAPTER 10: The Term Structure of Interest Rates. CHAPTER 11: Basis Relations and Spreads. PART THREE: Speculation and Hedging. CHAPTER 12: Speculation and the Speculative Risk Premium. CHAPTER 13: Hedging Objectives. CHAPTER 14: Hedge Ratios. CHAPTER 15: Quality Basis Risk. CHAPTER 16: Calendar Basis Risk. PART FOUR: Appendixes. APPENDIX 1: Economic Theory and Equilibrium. APPENDIX 2: Derivation of the Fundamental Value Equation. APPENDIX 3: Relation between the Cost of Carry Model and the Fundamental Value Equation. References. Index.