About this book
Financial Engineering provides a wide-ranging and in-depth coverage of the instruments used in the construction of financial products. Beginning with a description of the fundamental instruments used in financial engineering and their valuation, the text proceeds to analyse how those instruments can be combined to create synthetic structures. Later chapters cover more advanced financial products discussing their composition, valuation and risk hedging considerations.
Included with this book is a free diskette containing EXCEL spreadsheets that are used to explore the more advanced topics. These allow the reader to experiment with: pricing a variety of exotic options in binomial and Black & Scholes frameworks, value equity and other special swap structures, analysing option hedging positions incorporating bid-ask spreads and volatility smiles and frowns. The operation of the computer software is clearly described and integrated into the main body of the text.
Bonds Options Rating Swaps Volatility