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Monday September 6, 2010

Managing Global Financial And Foreign Exchange Rate Risk
by Ghassem A. Homaifar

Business/Strategy (click here to view other books in this category)

Managing Global Financial And Foreign Exchange Rate Risk January 0001

Ghassem A. Homaifar

Wiley -

9780471281153

****

Price

11,000.00

$84.62

From the balance of payment exposure to foreign exchange and interest rate risk, to credit derivatives and other exotic options, futures, and swaps for mitigating and transferring risk, this book provides a simple yet comprehensive analysis of complex derivatives pricing and their application in risk management. The risk posed by foreign exchange transactions stems from the volatility the exchange rate, the volatility of the interest rates, and factors unique to individual companies which are interrelated. To protect and hedge against adverse currency and interest rate changes, multinational corporations need to take concrete steps for mitigating these risks. Managing Global Financial and Foreign Exchange Rate Risk offers a thorough treatment of price, foreign currency, and interest rate risk management practices of multinational corporations in a dynamic global economy. It lays out the pros and cons of various hedging instruments, as well as the economic cost benefit analysis of alternative hedging vehicles. Written in a detailed yet user-friendly manner, this resource provides treasurers and other financial managers with the tools they need to manage their various exposures to credit, price, and foreign exchange risk. Chapters include coverage of such topics as: Balance of payment exposure management Foreign exchange rate dynamics Application of options and futures for managing exposure Principles of futures: pricing and applications Interest rate futures: pricing and applications Swaps Transaction, translation, and economic exposure Debt, equity, and other synthetic structures Options on futures Credit derivatives: pricing and applications Credit and other exotic derivatives Absolute version the purchasing power parity, 52 Accrued interest, 159 Add-on factor, 334, 335 Agency costs, reducing, 253 problems, 3 relationship, 4 Allayannis, C:. and J.Weston, 105, 365 All-current rate method, 218 Allen, L. and C. Pantzalis, 251, 365 Allied Irish Bank, 50 Allied Lyons, I 1 All-in cost of cap, 192 Altman, E., 338, 365 Altman, Daniel, 339 Altman and Kao, 338 American Airlines, 101 Annualized cap premium, 191 Anticipatory hedge, 122 Approximate duration, 154, 277, Arbitrage, 47 Arbitrage CI-Os, 330 Arbitrage profit, 147, 331 Arbitrageurs, 25 Argentina bonds, 322 Arthur Andersen, 4 Ashanti Goldfield, 101 Asian currency crisis, 68 Asian Free Trade Agreement (AFTA), 13 Asian options, 301 Asset-backed derivatives, 259 Asset swap switch, 341, 344, 346 At the money (ATM), 75 Atlanta HDD futures, Managing Global Financial and Foreign Exchange Rate Risk covers various swaps in this geometrically growing field with notional principal in excess of $120 trillion. From caplet and corridors to call and put swaptions, this book covers the microstructure of the swaps, options, futures, and foreign exchange markets. From credit default swap and transfer and convertibility, options to asset swap switch and weather derivatives, this important reference illustrates their simple pricing and application. To show real-world examples, each chapter includes a case study, highlighting a specific problem, as well as a set of steps to solve it. Numerous charts accompanied by actual Wall Street figures provide the reader with the opportunity to comprehend and appreciate the role and function of derivatives, which are often misunderstood in the financial market. This detailed resource will guide the individual, as well as government and multinational corporations, safely through the maze of various exposures. A must-read for treasurers, controllers, money mangers, portfolio managers, security analysts, and academics, Managing Global Financial and Foreign Exchange Rate Risk represents an important collection of upto-date risk management solutions. Ghassem A. HOMAIFAR is a professor of financial economics at Middle Tennessee State University. He has a master of science in industrial management from the State University of New York at Stony Brook and a PhD in finance from the University of Alabama. He is the author of numerous articles that have appeared in the Journal of Risk and Insurance, Journal of Business Finance and Accounting, Weltivirtschaftliches Archiv Review of World Economics, Applied Financial Economics, Applied Economics, International Economics, and Global Finance Journal.