Test bank for Introduction to Derivatives and Risk Management, 9th Edition by Don M. Chance
Test bank for Introduction to Derivatives and Risk Management, 9th Edition by Don M. Chance
Give your students a solid understanding of financial derivatives and their use in managing the risks of financial decisions with this leading text. Chance/Brooks’ AN INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 9E offers an outstanding blend of institutional material, theory, and practical applications. The latest financial information throughout this edition and timely Internet updates on the text’s website ensure the material reflects the most recent changes in today’s financial world. You’ll find detailed, but flexible, coverage of options, futures, forwards, swaps, and risk management as well as a balanced introduction to pricing, trading, and strategy. You can easily address only the topics and chapters that best fit your needs. A variety of practical end-of-chapter applications, memorable examples from real businesses throughout the learning features, and minimal use of technical mathematics keep the text’s presentation accessible and engaging. Stock-Trak software, available with each new text, provides additional value and opportunity for practical working experience. Count on this exceptional text to provide the thorough introduction to derivatives and risk management that students need for success in financial business today.
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Ch 1: Introduction
Derivative Markets and Instruments
The Underlying Asset
Important Concepts in Financial and Derivative Markets
Fundamental Linkages between Spot and Derivative Markets
Role of Derivative Markets
Criticisms of Derivative Markets
Misuses of Derivatives
Derivatives and Ethics
Derivatives and Your Career
Sources of Information on Derivatives
Book Overview
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Part I: Options
Ch 2: Structure of Options Markets
Development of Options Markets
Call Options
Put Options
Over-the-Counter Options Market
Exchange-Listed Option Trading
Mechanics of Trading
Option Price Quotations
Types of Options
Transaction Costs in Option Trading
Regulation of Options Markets
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Appendix 2.A: Margin Requirements
Appendix 2.B: Taxation of Option Transactions
Ch 3: Principles of Option Pricing
Basic Notation and Terminology
Principles of Call Option Pricing
Principles of Put Option Pricing
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Appendix 3: Dynamics of Option Boundary Conditions: A Learning Exercise
Ch 4: Option Pricing Models: The Binomial Model
One-Period Binomial Model
Two-Period Binomial Model
Extensions of the Binomial Model
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Ch 5: Option Pricing Models: The Black-Scholes-Merton Model
Origins of the Black-Scholes-Merton Formula
Black-Scholes-Merton Model as the Limit of the Binomial Model
Assumptions of the Black-Scholes-Merton Model
A Nobel Formula
Variables in the Black-Scholes-Merton Model
Black-Scholes-Merton Model When the Stock Pays Dividends
Black-Scholes-Merton Model and Some Insights into American Call Options
Put Option Pricing Models
Managing the Risk of Options
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Appendix 5: A Shortcut to the Calculation of Implied Volatility
Ch 6: Basic Option Strategies
Terminology and Notation
Stock Transactions
Call Option Transactions
Put Option Transactions
Calls and Stock: The Covered Call
Puts and Stock: The Protective Put
Synthetic Puts and Calls
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Ch 7: Advanced Option Strategies
Option Spreads: Basic Concepts
Money Spreads
Calendar Spreads
Ratio Spreads
Straddles
Box Spreads
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Part II: Forwards, Futures, and Swaps
Ch 8: The Structure of Forward and Futures Markets
Development of Forward and Futures Markets
Over-the-Counter Forward Market
Organized Futures Trading
Futures Traders
Mechanics of Futures Trading
Futures Price Quotations
Types of Futures Contracts
Transaction Costs in Forward and Futures Trading
Regulation of Futures and Forward Markets
OTC Central Clearing
Summary
Key Terms
Further Reading
Concepts Checks
Questions and Problems
Appendix 8: Taxation of Futures Transactions in the United States
Ch 9: Principles of Pricing Forwards, Futures, and Options on Futures
Generic Carry Arbitrage
Carry Arbitrage When Underlying Generates Cash Flows
Pricing Models and Risk Premiums
Pricing Options on Futures
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Ch 10: Futures Arbitrage Strategies
Short-Term Interest Rate Arbitrage
Intermediate- and Long-Term Interest Rate Arbitrage
Treasury Bond Futures Spreads and the Implied Repo Rate
Stock Index Arbitrage
Foreign Exchange Arbitrage
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Appendix 10: Determining the CBOT Treasury Bond Conversion Factor
Ch 11: Forward and Futures Hedging, Spread, and Target Strategies
Why Hedge?
Hedging Concepts
Determination of the Hedge Ratio
Hedging Strategies
Spread Strategies
Target Strategies
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Appendix 11: Taxation of Hedging
Ch 12: Swaps
Interest Rate Swaps
Currency Swaps
Equity Swaps
Some Final Words about Swaps
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Part III: Advanced Topics
Ch 13: Interest Rate Forwards and Options
Forward Rate Agreements
Interest Rate Options
Interest Rate Swaptions and Forward Swaps
Summary
Key Terms
Further Reading
Concept Checks
Questions and Problems
Ch 14: Advanced Derivatives and Strategies
Advanced Equity Derivatives and Strategies
Advanced Interest Rate Derivatives
Exotic Options
Some Unusual Derivatives
Summary
Key Terms
Further Reading
Concepts Checks
Questions and Problems
Appendix 14: Monte Carlo Simulation
Ch 15: Financial Risk Management Techniques and Applications
Why Practice Risk Management?
Managing Market Risk
Managing Credit Risk
Other Types of Risks
Perspectives on Financial Risk Management
Summary
Key Terms
Further Reading
Concepts Checks
Questions and Problems
Ch 16: Managing Risk in an Organization
The Structure of the Risk Management Industry
Organizing the Risk Management Function in a Company
Risk Management Accounting
Risk Management Industry Standards
Responsibilities of Senior Management
Summary
Key Terms
Further Reading
Concepts Checks
Questions and Problems
Appendix A: List of Important Formulas
Appendix B: References
Appendix C: Solutions to Concept Checks
Test bank for Introduction to Derivatives and Risk Management, 9th Edition by Don M. Chance
Zohar (verified owner) –
Happy with the book, Its a digital Files good for student and not expansive
Leo (verified owner) –
The product is firmly packed.