This text provides thorough treatment of futures, plain vanilla options, swaps and the use of exotic, interest rate options in speculation and hedging. Pricing of options using numerical methods such as lattices are also covered.

This new edition of the hugely successful Quantitative Financial Economics has been revised and updated to reflect the most recent theoretical and econometric/empirical advances in the financial markets. It provides an introduction to models of economic behaviour in financial markets, focusing on discrete time series analysis. Emphasis is placed on theory, testing and explaining 'real-world' issues.

The new edition will include:

• Updated charts and cases studies.
• New companion website allowing students to put theory into practice and to test their knowledge...