Editorial ReviewsProduct Description
Financial Products provides a step-by-step guide to some of the most important ideas in financial mathematics. It describes and explains interest rates, discounting, arbitrage, risk neutral probabilities, forward contracts, futures, bonds, FRA and swaps. It shows how to construct both elementary and complex (Libor) zero curves. Options are described, illustrated and then priced using the Black Scholes formula and binomial trees. Finally, there is a chapter describing default probabilities, credit ratings and credit derivatives (CDS, TRS, CSO and CDO). An important feature of the book is that it explains this range of concepts and techniques in a way that can be understood by those with only a basic understanding of algebra. Many of the calculations are illustrated using Excel spreadsheets, as are some of the more complex algebraic processes. This accessible approach makes it an ideal introduction to financial products for undergraduates and those studying for professional financial qualifications.

Book Description
Financial Products provides a step-by-step guide to some of the most important ideas in financial mathematics, including options, future contracts, bonds and derivatives. Its accessible approach makes it an ideal introduction to financial products for undergraduates and those studying for professional financial qualifications.

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Product Details Hardcover: 408 pages Publisher: Cambridge University Press; 1 edition (November 10, 2008) Language: English ISBN-10: 0521863589 ISBN-13: 978-0521863582 Product Dimensions: 9.8 x 6.8 x 1.2 inches Shipping Weight: 2.2 pounds (View shipping rates and policies) Average Customer Review: No customer reviews yet. Be the first. Amazon.com Sales Rank: #1,416,558 in Books (See Bestsellers in Books)