Structured Equity Derivatives
The Definitive Guide to Exotic Options and Structured Notes
Wiley Finance Series
1. Edition July 2001
390 Pages, Hardcover
Handbook/Reference Book
Short Description
This book focuses on the structuring and practical applications of derivatives by outlining and introducing the reader to a flexible approach, emphasizing 'financial architecture' rather than 'financial engineering'. With this focus on product design rather than pricing, the book avoids complex pricing formulas and numerical procedures. Moreover, the book's consideration of equity derivative structuring can be applied to structure interest rate, FX, commodity, credit, energy, catastrophe derivatives.
Although the pricing and hedging of derivatives contracts has been the subject of a large number of books, hardly any books exist on the actual design of derivatives contracts. Structured Equity Derivatives fills this gap in a remarkable way. The book introduces an approach to the structuring and practical application of derivatives that allows the reader to create his own derivatives solutions to an endless variety of problems. The approach is extremely natural - the only limit is the reader's own creativity.
Since it clearly explains the reasons why derivatives exist and why there is such a large variety, this is the book that should be read before picking up any other book on the pricing and hedging of derivatives. As the book concentrates on product design instead of pricing, there are no complex pricing formulas or numerical procedures. The emphasis is on intuition and common sense rather than complex formal results, which makes the book accessible to people from many different backgrounds.
The General Framework.
Stocks and Stock Market Indices.
Special Contract Features.
Index-Linked Cash Flows.
Pricing and Hedging.
Improved Efficiency.
Risk Management.
Reducing the Costs of Buying Options.
Equity-Linked Bull Notes.
Raising the Participation Rate.
Market Timing and Non-Bullish Views.
Digital and Coupon Bearing Notes.
Equity-Linked Saving.
Appendix A.
Appendix B.
Appendix C.
Bibliography.
Index.
