Book Description

The widespread use of derivative instruments is considered to be one of the main causes of the 2008 financial crisis. Contrary to popular belief, the improper use of derivatives, not the nature of derivative securities themselves, caused the collapse of 2008. In India, derivatives were introduced as late as 2000. Derivatives and Risk Management provides readers with a thorough knowledge of the functions of derivatives and the many risks associated with their use. Besides discussing the particular derivative instruments available in India, the book concentrates on four types of derivatives: forward contracts, futures contracts, swap contracts and options contracts. It is targeted at postgraduate students of commerce, finance and management, and blends theory, problems and cases to introduce the basic concepts in a lucid, engaging manner. It will also be of use to fund managers, risk-management specialists, treasury managers, students taking the CFA examinations and anyone who wants to understand the derivatives market in India.