Use of Derivatives in Risk Management

ISBN-13: 9783848417858 / Angielski / Miękka / 80 str.

Mohammad Osman Abdul Qadeer; Konstantinos Tolikas; Searat Ali

Opis

Due to the increased globalisation among economies of the world, corporations use derivatives in order to minimise their exposure to the uncertainty caused by recent economic and financial crunch. The development of option pricing model by Black and Scholes (1973) and Merton (1973) made possible for derivatives market to turn out to be a significant instrument in risk management. The use of derivatives has increased dramatically over the past two decades despite of severe loses faced by corporations. This book emphasis on the most significant rationales over derivative usage among corporations, i.e. why firms use derivatives, its comparison and contrast among developed and developing economies, and factors stimulating firms to use derivatives. An extensive literature review and critical analysis has been undertaken which provides a comprehensive synopsis of the rationales over derivative usage among corporations.

O autorze

Mr. Osman Qadeer has earned MSc in Accounting and Finance (2011) from Cardiff Business School Cardiff University (UK), rated one of the top business schools in the world. He gained expertise in the area of finance particularly in derivatives and risk management.