A Financial Bestiary: Introducing Equity, Fixed Income, Credit, FX, Forwards, Futures, Options and Derivatives
This is an applied book, using the bare minimum of mathematics to give a good understanding of finance. It is ideal for people just starting out in their financial career or those who have some financial experience who want to broaden and refresh their knowledge. A bestiary was a medieval book containing pictures and descriptions of mythical beasts each with its own moral tale to edify the reader. This is a bestiary of finance, and as such starts with a picture book of jobs and traded instruments in finance. Then the "Foundations" section sets out the broad picture of who does what and why in financial markets. Finally there are detailed chapters on financial instruments grouped into sections on "Fixed Income," "Credit," and "Forwards, Futures and Options." The book contains many figures and fully worked exercises to clarify the concepts.
Forwards Futures Options
Call and Put Options
Option Pricing Risk
Option Strategies Structured Notes
A Interest Calculations
amount asset bank basis points becomes bond borrowing calculate call option capital carry cash flows contract convertible corporate correlation cost coupon coupon bond credit risk currency curve debt decreases default delta depends derivatives difference discount factor distribution dollar duration effect equal equation equity example exchange Exercise expect expiry Figure five fixed fixed coupon floating forward fund future given gives greater hedge income increase interest rate investment investor issue issuer LIBOR lose loss margin maturity means measure million mortgages normal notional paid payment payoff period portfolio position premium present value principal probability profit protection quoted receive risk sell sensitivity share short shows simple spread strike structure swap Table term three month trade underlying usually volatility yield zero