Economics: Financial Derivatives, 3rd Edition by Robert Kolb, James A. Overdahl -

Financial derivatives–financial instruments whose value depends on other basic instruments, such as stocks or bonds–are one of the most important financial innovations of the last century. While they are unsurpassed as tools for speculation, financial derivatives have also emerged as important risk-management tools in the corporate world.

If you want to understand derivatives without getting bogged down by the mathematics surrounding their pricing and valuation, Financial Derivatives, Third Edition is the book for you. Through in-depth insights gleaned from years of financial experience, Robert Kolb and James Overdahl clearly explain what derivatives are and how you can prudently use them within the context of your underlying business activities.

Financial Derivatives, Third Edition will introduce you to the wide range of markets for financial derivatives. This invaluable guide offers a broad overview of the different types of derivatives–futures, options, and swaps–while focusing on the principles that determine market prices. This comprehensive resource also provides a thorough introduction to financial derivatives and their importance to risk management in a corporate setting. After each derivative is described and examined, Kolb and Overdahl address the practical applications of these instruments in the area of risk management.

Filled with helpful tables and charts, informative Q&A sections, and new chapters that reflect an increased emphasis on risk management, Financial Derivatives, Third Edition offers a wealth of knowledge on futures, options, swaps, financial engineering, and structured products. Through the process of financial engineering you will learn how to apply financial derivatives to numerous risk management scenarios.

As a financial professional, if you are looking to minimize risk and maximize profits, you must understand how to use derivatives. Fully updated and completely revised to reflect today’s ever-changing economic environment, Financial Derivatives, Third Edition will help you unlock the incredible potential of financial derivatives.