Demystifying exotic products: interest rates, equities and foreign exchange

This will be a practical guide to understanding exotic options. One of the many factors that have contributed to the financial crisis has been investors misusing and misunderstanding exotic products. For example, in many cases, investors assume that in a worst case scenario, their principle investment is protected, however this is not always the case and they can lose everything. A proper understanding of how exotic options are structured would have avoided thesefailures. The book will cover all the key exotic products in Interest rates, equity and FX exotics. It will show readers how each product is structured; explain why they exist and how they work, and what risks are borne by which parties. By the time the reader has finished the book, he/she will be able to appraise, understand and make an informed decision on whether to invest in a particular structure or not. When confronted with derivatives salespeople, they will have a much clearer picture on what is being sold, and what to look out for.The book will avoid the complex mathematics use d in pricing, and will focus purely on what the investor needs to understand, what danger signs to look outfor and how to understand all aspects of a complex derivative.

• ISBN: 978-0-470-74815-2
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 272
• Fecha Publicación: 04/12/2009
• Nº Volúmenes: 1
• Idioma: Inglés