## Exotic Derivatives and Risk: Theory, Extensions and ApplicationsThis book discusses in detail the workings of financial markets and over-the-counter (OTC) markets, focusing specifically on standard and complex derivatives. The subjects covered range from the fundamental products in OTC markets, standard and exotic options, the concepts of value at risk, credit derivatives and risk management, to the applications of option pricing theory to real assets.To further elucidate these complex concepts and formulas, this book also explains in each chapter how theory and practice go hand-in-hand. This volume, a culmination of the author's 12 years of professional experience in the field of finance, derivative analysis and risk management, is a valuable guide for postgraduate students, academics and practitioners in the field of finance. |

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### Contents

Exchange Forward Start Chooser Options | 131 |

and Their Applications | 226 |

and Their Applications | 317 |

Asian and Flexible Asian Options and Their Applications | 348 |

Steps Parisian and Static Hedging of Exotic Options | 372 |

Basic Concepts and Applications in Risk | 403 |

The Basic Concepts | 446 |

### Other editions - View all

Exotic Derivatives And Risk: Theory, Extensions And Applications Bellalah Mondher Limited preview - 2008 |

### Common terms and phrases

analysis approach Asian options asset value average barrier options Bellalah binary binary options Black-Scholes bond call option capital chooser compound option computed context corporate correlation corresponds cost of carry credit derivatives credit risk credit spread default probability default risk Delta Gamma Vega denote discount dollar equation equity swap estimate European call exchange rate exotic options expected loss exposure firm firm's value formula forward contract future Gamma Vega Theta given hedging holder incomplete information information costs interest rate investor Ito's lemma Journal of Finance knock-out loan lookback lookback options maturity date maximum Merton normal distribution option pricing option value pay-off portfolio position premium presence of information Price Delta Gamma put option put-call parity real options recovery rate RiskMetrics shadow costs standard call standard options step options strategy strike price swaption Table term traded underlying asset price up-and-out valuation variable variance volatility zero