A comprehensive guide to financial engineering that stresses real-world applications Financial engineering expert Charles S. Tapiero has his finger on the pulse of shifts coming to financial engineering and its applications. With an eye toward the future, he has crafted a comprehensive and accessible book for practitioners and students of Financial Engineering that emphasizes an intuitive approach to financial and quantitative foundations in financial and risk engineering. The book covers the theory from a practitioner perspective and applies it to a variety of real-world problems.
- Examines the cornerstone of the explosive growth in markets worldwide
- Presents important financial engineering techniques to price, hedge, and manage risks in general
- Author heads the largest financial engineering program in the world
Author Charles Tapiero wrote the seminal work Risk and Financial Management.
Introduction xv
Who This Book Is For xvi
How This Book Is Structured xvii
What's on the Companion Web Site xix
CHAPTER 1 Risk, Finance, Corporate Management, and Society 1
Overview 1
Risks Everywhere—A Consequence of Uncertainty 1
Risk and Finance: Basic Concepts 4
Finance and Risks 6
Financial Instruments 7
Securities or Stocks 7
Example: An IBM Day-Trades Record 7
Bonds 9
Portfolios 10
Example: Constructing a Portfolio 11
Derivatives and Options 12
Real and Financial Assets 15
Financial Markets 16
Option Contracts 16&l³k
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