EVERYTHING YOU NEED TO KNOW ABOUT DERIVATIVES

All About Derivatives, Second Edition, presents the complex subject of financial derivatives with a clarity and coherence you won’t find in other books. Using real-world examples and simple language, it lucidly illustrates what derivatives are and why they are so powerful. This second edition of All About Derivatives provides a rock-solid foundation on:

• The most common contracts available to you in today's market


• Key concepts such as cost of carry, settlement, valuation, and payoff


• Proven methods for establishing fair value


• How leverage can work for you--and against you


• The various derivative contracts traded today, including forwards, futures, swaps, and options


• Pricing methods and mathematics for determining fair value


• Hedging strategies for managing and reducing different types of risk

INCLUDES A BRAND-NEW CHAPTER ON THE ROLE DERIVATIVES PLAYED IN THE 2008 FINANCIAL MELTDOWN