||Managing Financial Risk with Forwards, Futures, Options, and Swaps, Second Edition
||Fred R. Kaen
||American Management Association
|Field Of Study:
||Basic familiarity with financial markets and financial market terminology; some familiarity with elementary statistics
|Purchase This Course
You hear it all the time: today, risk management drives
financial strategy. How can you be sure you're making the most profitable use of
the powerful tools available to manage your organization's risk?
Now, with this brand new, totally revised edition you'll learn the art and
science of risk management as it is practiced in today's most ambitious and
successful companies. You'll see how to calculate and use the new metric of
value at risk (VaR) to establish winning strategies and limit potential loss.
And you'll see how to combine the four types of derivatives–forwards, futures,
options, and swaps–to create effective risk management products for your
organization's specific needs.
You'll gain a solid foundation in the basic elements, strategies, and
implications of derivatives, their products and terminology, as well as a better
understanding of the effects of financial risk management on a firm's investment
and financing decisions and on its overall profitability.
In addition to its emphasis on new market structures and concepts, the Second
Edition of Managing Financial Risk with Forwards, Futures, Options, and Swaps
also includes numerous examples that clarify risk management applications;
Internet sources and resources; and valuable exercises that allow you to apply
the principles and techniques of risk management to real-world situations.
Learn how to:
- Formulate and implement risk management strategies that are consistent
with corporate goals
- Exploit hedging as a positive risk management tactic
- Reduce the likelihood of financial distress
- Use your organization's special skills and knowledge to optimize risk
- Add real value by increasing expected cash flows and reducing
investor/lender required rates of return
Major Subjects Covered:
- Financial Risk Management
- Measuring Risk Exposure
- Interest Rate Risk Management Issues
- Managing Risk with Forward Contracts
- Managing Risk with Futures Contracts
- Options: Terminology and Principles
- Managing Risk with Options
- Managing Risk with Swaps
- Financial Engineering
- Corporate Strategy and Risk Management.
Understand the concept of risk management and how to use a variety of
derivative financial strategies to manage risk. Learn how hedging can positively
affect an organization's risk exposure.
About This Course:
As one course among many offered in the American Management
Association's curriculum, Managing Financial Risk with Forwards, Futures,
Options, and Swaps, Second Edition, is a basic, introductory course for
financial managers and nonfinancial managers who need to understand the
fundamental elements, strategies, and implications of derivatives. After the
investment debacles of the late 1990s, many more financial managers in industry
and government are eager to better understand these instruments.
Managing Financial Risk with Forwards, Futures, Options, and
Swaps, Second Edition, is organized around the risk management tasks facing
the treasurer's office. It opens with an overview of risk management and the
measurement of risk exposure. In addition to explaining terminology, principles,
and use of forwards, futures, options, and swaps, the course discusses cash flow
at risk (CaR), value at risk (VaR), interest rate risk management, commodities,
new hedging products, and risk management markets. A new feature called "Risk
Management and You" gives learners the opportunity to apply the principles and
techniques of risk management to their own personal and professional situations.
The course wraps up with a discussion of financial engineering and its
relationship to corporate strategy.
Whenever possible, we keep the presentation at an intuitive
level. We wish to emphasize how a manager not technically trained to do the
sophisticated calculations and construct immunization strategies can still be
informed about what the "experts" are doing and ask informed questions about
Fred R. Kaen is a Professor of Finance and Codirector of the
International Private Enterprise Center at the Whittemore School of Business and
Economics, University of New Hampshire. He has taught at the University for over
2 5 years in the areas of corporate finance, corporate governance, and
international financial management in the University's undergraduate, MBA, and
Executive MBA programs. Kaen has published extensively in leading academic
journals, and is the author of several American Management Association
self-study courses, including the first edition of Managing Financial Risk
with Forwards, Futures,
Options and Swaps. His research interests lie in
international finance, corporate governance, and corporate finance. He has
presented his research at universities and conferences in North America, Europe,
and Asia. In addition, Kaen has been a visiting professor at the University of
Oregon, The Norwegian School of Economics and Business (Bergen), the Norwegian
School of Management (Oslo), and the University of Hamburg. He continues to work
closely on joint research projects with his overseas colleagues.
Fred Kaen holds a doctoral degree in finance and international
business from the University of Michigan, an M.B.A. in finance from Michigan,
and a B.S. in economics from Lehigh University.
The publisher wishes to thank the following people for their
review of the manuscript of this course: Ike Mathur, Professor of Finance,
Southern Illinois University, Carbondale, and Wei Rowe, Assistant Professor of
Finance, University of Nebraska at Omaha.
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