Financial Derivatives: The Currency and Rates Factor

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To be financially literate in today’s market, students and professionals in the field of finance must have a solid understanding of the concepts, instruments and application of financial derivatives. This text offers a broad based introduction to financial derivatives and covers both the technical aspects of these instruments and information about the markets in which they are traded. The text balances rigor and accessibility through a clear writing style, a graduated mathematical treatment, and an integration of numerous examples and worked out activities to illustrate the application of techniques and facilitate self-assessment. Salient Features Focuses primarily in foreign exchange and interest rate derivatives, which accounts for ~ 90% of the global derivative market turnover. Other asset classes in the balance ~ 10 % include Equity, Commodity and Credit Derivatives. Includes vanilla and exotic structured products on foreign exchange and interest rate derivatives, which are executed globally by investors, hedge funds and banks. Features screenshots from Thomson Reuters displaying among others, live currency and rates market as they appear to professional traders, historical charts displaying economic data releases and calculators which traders use to price options. Elucidates theory with real life practical examples and case studies which emerges from authors' rich experience while working with global investment banks. Reviews on Book … written in a manner that even a novice in the field of finance will be able to grasp the concepts with ease. A must-have for people working in the field of derivatives. V. P. Bharadwaj, Joint Secretary, Ministry of Finance, Government of India A unique and unparalleled effort in the area of foreign exchange and interest rate derivative by the authors who have tremendous experience in this area. … a must-read for all who wish to hedge their exposure against adverse foreign exchange and interest rate movements. D. G. Kale, General Manager, Reserve Bank of India … a useful depository of knowledge for students as well as professionals. Venkat Thiagarajan, Senior Vice President and Head Treasury (FOREX), Reliance Industries Limited This book can guide the CFOs in understanding the markets as it tracks the factors that impact treasury operations and businesses. T. Venkatesan, Head, Corporate Forex Treasury, Tata Consultancy Services This book is a stimulating read with an excellent overview of risk and rewards in derivatives, especially in the Indian context. R. Govindan, General Manager, Corporate Finance, Larsen and Toubro This book is one of the finest books I have come across on foreign exchange and interest rates market. Here comes a masterpiece which puts an end to the search for a comprehensive book on the complex and dynamic world of derivatives. Ram Subramonian, Vice President, Treasury (Foreign Exchange), Reliance Industries Ltd. … carefully structured to provide seamless understanding of concepts for beginners as well as practicing treasurers. Vineet Sood, Senior Vice President, Treasury, HCL In a highly user-friendly style of presentation, this book gives a great insight into the significance of the derivatives markets. Ramaswami Sivakumar, General Manager, Treasury, Wipro About The Author Aman Chugh, one of the youngest Chartered Accountants, has vast experience and expertise in currency and interest rates derivative markets, which he has gained while working as Regional Head (North Region) of FX Channels in Global Markets Group of ICICI Bank. He is one of the youngest advisors to the Capital Markets Study Group of Northern India Regional Council of The Institute of Chartered Accountants of India and is also on the panel of trainers providing training in the domain of derivative markets on behalf of ICICI Group. In the past, he has been associated with PriceWaterHouse Coopers, Ernst & Young (Dubai) and General Electric (India and USA) and has a unique blend of expertise and experience in fields of Corporate Restructuring (inc Valuations and M&A), Project Financing, Corporate Banking, Forex, Derivatives and Risk management. He is a reputed consultant/trainer to various Fortune-500 and other reputed companies and is also a visiting faculty to reputed B-Schools and Universities. You may further log on to www.acca.org.in to know more about him. Divik Maheshwari is presently Vice President in Fixed Income Division within Investment Banking vertical of Credit Suisse AG (a top-tier Global Investment Bank), Mumbai, dealing across vanilla and hybrid product suites comprising foreign exchange, interest rate, credit, commodity and equity markets. He has been advising and executing risk management and derivative solutions for large capital and mid-capital corporates and MNCs. Prior to this, he has worked with Deutsche Bank, Kotak Mahindra Bank, ICICI Bank and Tata Consultancy Services. Divik possesses a decade of experience in financial markets and is a specialist in currency and interest-rate derivatives, and technical charting. Divik is a qualified Chartered Accountant, Company Secretary ( Gold Medalist) , and Financial Risk Manager (FRM, USA). Table Of Contents 1. Universe of Derivatives - Facts 2. Derivatives Introduced – Indian Perspective 3. OTC FX Concepts 4. ETC FX Concepts 5. FX Options – Concepts 6. FX Options – Valued 7. FX Options – Structured Solutions 8. Interest Rate Product – Vanilla to Exotic 9. Money Market: The FX Impact 10. Indianomics 11. Fundamental Analysis & Data Releases 12. Technical Analysis 13. ISDA Agreement - Documenting Derivatives