Financial Engineering: Tools and Techniques to Manage Financial Risk - Hardcover

Galitz, Lawrence

Hardcover

ISBN 10: 0273615920 ISBN 13: 9780273615927

Publisher: Financial Times Management, 1995

Synopsis

Financial Engineering is about using financial instruments to reduce or eliminate risk, or to restructure a financial exposure to improve its characteristics. This book shows how to apply the latest techniques by managing financial risks of all kind. The book carefully explains the tools of financial engineering and defines each instrument in depth. It describes the markets on which they are traded, and clearly illustrates how each product is priced and hedged. All applications are illustrated with fully-worked practical examples, and recommended tactics and techniques are "tested" by demonstrating the results with recent historical data. The book provides a solid understanding of the underlying theory as well as a clear demonstration of effective practice. The book:* clearly defines all the tools used in financial engineering* caefully explains instruments such as FRAs, financial futures, options, currency and interest-rate swaps, caps, floors, collars, corridors, swaptions, IRGs, SAFE's and many others* covers advanced products like barrier options, diff swaps, multi-factor and path-dependent options, leveraged floaters and other structured products* considers exactly how each one is used in practice* shows ways in which financial engineering techniques can be applied to manage risks in currencies, interest rates,equities and commodities.

About this title

About the Author

Lawrence Gallitz is a Director of ACF Consultans Ltd, and has extensive knowledge and expertise in the fields of banking and finance. He conducts seminars on wide-ranging topics throughout the world, and regularly undertakes specialised consultancy assignments for major banking clients. Dr Galitz was previously Associate Director of the Institute of European Finance, and was Director of Studies in the School of Accounting Banking and Economics at the University College of North Wales, Bangor.

From Library Journal

The collapse of the fixed exchange rate system in the early 1970s and its replacement by floating rates created remarkable opportunities for financial innovations. Such innovations supported by recent technological breakthroughs have enabled market participants to deal effectively with the financial risks associated with currency, interest-rate, and commodity transactions. This book is unusual in treating its subject comprehensively. Galitz, a financial consultant, clearly defines and illustrates the customized derivative securities for managing financial risk. He explains the hedging schemes, pricing mechanisms, and applications of the FRAs, SAFEs, futures, forwards, currency, and interest-rate swaps and both single and multiperiod options. He also highlights how and why these instruments are built and describes the capital, foreign exchange, and commodity markets in which these products are traded. Recommended for professionals as well as advanced undergraduate and graduate classes in finance.
Ali D. Abdulla, East Carolina Univ., Greenville,
Copyright 1995 Reed Business Information, Inc.

Edition details

• Publisher: Financial Times Management
• Publication date: 1995
• ISBN 10: 0273615920
• ISBN 13: 9780273615927
• Binding: Hardcover
• Language: English
• Number of pages: 496