{"product_id":"demystifying-exotic-products-isbn-9780470748152","title":"Demystifying Exotic Products","description":"In recent times, derivatives have been inaccurately labelled the financial weapons of mass destruction responsible for the worst financial crisis in recent history. Inherently complex and perilous for the ill-informed investment professional they can however also be gainfully harnessed.  \u003cp\u003eThis book is a practical guide to the complexities of exotic products written in simple terms based on the premise that derivatives are not homogenous, and not necessarily dangerous.\u003c\/p\u003e \u003cp\u003eBy exploring common themes behind the construction of various structured products in interest rates, equities and foreign exchange, and investigating the economic environment that promoted the explosive growth of these products, this book will help readers make sense of their relevance in this period of economic uncertainty. Subsequently, by explaining exotic products with simple mathematics, it will aid readers in understanding their potential use in certain investment strategies whilst having a firm control over risk.\u003c\/p\u003e \u003cp\u003eExotic products need not be inaccessible. By understanding the products available investors can make informed decisions ensuring features are consistent with their investment objectives and risk preferences. Author Chia Chiang Tan takes readers through the risks and rewards of each product, illustrating when products can damage investment strategies and how to avoid them, leading to suitable, profitable investments.\u003c\/p\u003e \u003cp\u003eUltimately, this book will provide practitioners with an understanding of derivatives, enabling them to determine for themselves which products will fit their investment strategy, and how to use them based on the economic environment and inherent risks.\u003c\/p\u003e  \u003cb\u003eForeword.\u003c\/b\u003e  \u003cp\u003e\u003cb\u003ePreface.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAcknowledgements.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eNotes.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Derivatives in their Golden Days (1994 to 2007).\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Uses of Derivatives.\u003c\/p\u003e \u003cp\u003e1.2 Structured Notes.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Themes in Constructing Exotic Products.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Principal Protection.\u003c\/p\u003e \u003cp\u003e2.2 Upside-Only Participation.\u003c\/p\u003e \u003cp\u003e2.3 Protected Selling of Optionality for Yield.\u003c\/p\u003e \u003cp\u003e2.4 Betting Against the Forward Curve.\u003c\/p\u003e \u003cp\u003e2.5 Diversification.\u003c\/p\u003e \u003cp\u003e2.6 Some Considerations in Hedging.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Basics of Derivatives.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 The Forward Contract.\u003c\/p\u003e \u003cp\u003e3.2 The Plain Vanilla Option.\u003c\/p\u003e \u003cp\u003e3.3 No-Arbitrage Pricing.\u003c\/p\u003e \u003cp\u003e3.4 The Black–Scholes Model.\u003c\/p\u003e \u003cp\u003e3.5 The Volatility Surface.\u003c\/p\u003e \u003cp\u003e3.6 Correlation.\u003c\/p\u003e \u003cp\u003e3.7 Modelling Considerations.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Barriers.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Digitals.\u003c\/p\u003e \u003cp\u003e4.2 Knockouts and Reverse Knockouts.\u003c\/p\u003e \u003cp\u003e4.3 One-Touches and No-Touches.\u003c\/p\u003e \u003cp\u003e4.4 Double Barriers and More.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Quantoes.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Some Motivation.\u003c\/p\u003e \u003cp\u003e5.2 Multi-Currency Products.\u003c\/p\u003e \u003cp\u003e5.3 Non-Deliverable Products.\u003c\/p\u003e \u003cp\u003e5.4 Self-Quantoes (Auto-Quantoes).\u003c\/p\u003e \u003cp\u003e5.5 Quantoes.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Swaps, Constant Maturity Swaps and Spreads.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 The Swap.\u003c\/p\u003e \u003cp\u003e6.2 Natural Payment Time and the Libor-in-Arrears.\u003c\/p\u003e \u003cp\u003e6.3 The Swaption.\u003c\/p\u003e \u003cp\u003e6.4 The Constant Maturity Swap.\u003c\/p\u003e \u003cp\u003e6.5 Spread between Two CMS Rates.\u003c\/p\u003e \u003cp\u003e6.6 Callable CMS.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Range Accruals.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Motivation.\u003c\/p\u003e \u003cp\u003e7.2 Single Reference Accruals.\u003c\/p\u003e \u003cp\u003e7.3 Multiple Reference Accruals.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Early Termination.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 The Mindset of a Benchmark Investor.\u003c\/p\u003e \u003cp\u003e8.2 Callables.\u003c\/p\u003e \u003cp\u003e8.3 Triggers (Autocalls).\u003c\/p\u003e \u003cp\u003e8.4 The Target Redemption Note.\u003c\/p\u003e \u003cp\u003e8.5 Puttables.\u003c\/p\u003e \u003cp\u003e8.6 Early Termination and Contingent Cashflows.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Pathwise Accumulators.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 The One-Way Floater.\u003c\/p\u003e \u003cp\u003e9.2 Skylines.\u003c\/p\u003e \u003cp\u003e9.3 Snowballs.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Power Reverse Dual Currencies.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 The Carry Trade.\u003c\/p\u003e \u003cp\u003e10.2 Long-Dated Foreign Exchange.\u003c\/p\u003e \u003cp\u003e10.3 Normal PRDCs.\u003c\/p\u003e \u003cp\u003e10.4 The Redemption Strike.\u003c\/p\u003e \u003cp\u003e10.5 Chooser PRDCs.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Baskets and Hybrids.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 Baskets and the Benign Effect of Averaging.\u003c\/p\u003e \u003cp\u003e11.2 Hybrid Baskets.\u003c\/p\u003e \u003cp\u003e11.3 “Best of” Products and Hybrids.\u003c\/p\u003e \u003cp\u003e11.4 Hybrids and Conditional Coupons.\u003c\/p\u003e \u003cp\u003e11.5 Multiplying Assets.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Some Exotic Equity Products.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 A Historical Perspective.\u003c\/p\u003e \u003cp\u003e12.2 The Cliquet.\u003c\/p\u003e \u003cp\u003e12.3 The Himalaya.\u003c\/p\u003e \u003cp\u003e12.4 The Altiplano.\u003c\/p\u003e \u003cp\u003e12.5 The Atlas.\u003c\/p\u003e \u003cp\u003e12.6 The Everest.\u003c\/p\u003e \u003cp\u003e12.7 Principal Protection or Lack Thereof.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Volatility and Correlation Products.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Variance and Volatility Swaps.\u003c\/p\u003e \u003cp\u003e13.2 Options on Variance Swaps.\u003c\/p\u003e \u003cp\u003e13.3 Correlation Swaps.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Fund Derivatives.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Fund Derivatives Products.\u003c\/p\u003e \u003cp\u003e14.2 Constant Proportion Portfolio Insurance.\u003c\/p\u003e \u003cp\u003e14.3 The Ideal Underlying Fund.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 The Products Post-2008.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 The Products Likely to Survive the Credit Crunch.\u003c\/p\u003e \u003cp\u003e15.2 Incorporating Some Lessons Learned.\u003c\/p\u003e \u003cp\u003e15.3 Credit Considerations.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSome Final Thoughts.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eGlossary.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendices.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eBibliography.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIndex.\u003c\/b\u003e\u003c\/p\u003e \u003cb\u003eCHIA CHIANG TAN\u003c\/b\u003e is currently a quantitative analyst in Global Markets at Deutsche Bank. Prior to this he has held positions at CIBC, Barclays Capital and Dresdner Kleinwort. His work has spanned a multitude of asset classes, including interest rates, equities and foreign exchange. In his various roles, he has seen first-hand how a myriad of derivatives solutions have emerged to satisfy client demands resulting from the prevailing economic environment, as well as how some of these purported solutions have at times gone badly wrong. Chia has an undergraduate degree in Mathematics from University College London and a Master of Mathematical Finance from the University of Toronto.  “\u003ci\u003eThis book does a great job of explaining complex concepts associated with sophisticated derivatives and structured products in a clear and easy to understand way. In addition, it provides the reader with the necessary foundation to engineer a strategy which expresses a specific market view while taking into account the investor's appetite for risk. If you want to get a better understanding of how structured products can be used then read on.\u003c\/i\u003e”  \u003cp\u003e\u003cb\u003e—Stéphane Arvanitis, Senior Vice President and Head of Derivative Strategies, ING Investment\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“\u003ci\u003eChia takes a refreshingly unique approach by concentrating on how exotic products have arisen in the last decade to address investors’ risk-reward preferences. He explains the economic rationales behind various esoteric products, their key features, as well as situations in which clients have inadvertently found themselves more exposed than they thought … This book makes compelling reading for anyone interested in structured products. And if you happen to be studying the mathematics behind financial derivatives, why not have a look at why there is demand for them in the first place? It might give you a better perspective as to the products at the end of the assembly line.\u003c\/i\u003e”\u003c\/p\u003e \u003cp\u003e\u003cb\u003e—Dr Alex Langnau, Global Head of Quantitative Analytics, Allianz Investment Management, and visiting scientist at the Ludwig-Maximilians University, Munich\u003c\/b\u003e\u003c\/p\u003e  In recent times, derivatives have been inaccurately labelled the financial weapons of mass destruction responsible for the worst financial crisis in recent history. Inherently complex and perilous for the ill-informed investment professional they can however also be gainfully harnessed.  \u003cp\u003eThis book is a practical guide to the complexities of exotic products written in simple terms based on the premise that derivatives are not homogenous, and not necessarily dangerous.\u003c\/p\u003e \u003cp\u003eBy exploring common themes behind the construction of various structured products in interest rates, equities and foreign exchange, and investigating the economic environment that promoted the explosive growth of these products, this book will help readers make sense of their relevance in this period of economic uncertainty. Subsequently, by explaining exotic products with simple mathematics, it will aid readers in understanding their potential use in certain investment strategies whilst having a firm control over risk.\u003c\/p\u003e \u003cp\u003eExotic products need not be inaccessible. By understanding the products available investors can make informed decisions ensuring features are consistent with their investment objectives and risk preferences. Author Chia Chiang Tan takes readers through the risks and rewards of each product, illustrating when products can damage investment strategies and how to avoid them, leading to suitable, profitable investments.\u003c\/p\u003e \u003cp\u003eUltimately, this book will provide practitioners with an understanding of derivatives, enabling them to determine for themselves which products will fit their investment strategy, and how to use them based on the economic environment and inherent risks.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989039300837,"sku":"NP9780470748152","price":95.7,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470748152.jpg?v=1761782540","url":"https:\/\/k12savings.com\/products\/demystifying-exotic-products-isbn-9780470748152","provider":"K12savings","version":"1.0","type":"link"}