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Introduction to Derivatives and Risk Management, 11th Edition

Don M. Chance, Robert Brooks

  • {{checkPublicationMessage('Available 6 April 2026', '2026-04-06T00:00:00+0000')}}
Starting At £51.50 See pricing and ISBN options
Introduction to Derivatives and Risk Management 11th Edition by Don M. Chance/Robert Brooks

Overview

Coupling real business examples with minimal technical mathematics, "Introduction To Derivatives and Risk Management," 11th Edition, blends institutional material, theory and practical applications to give students a solid understanding of how derivatives are used to manage the risks of financial decisions. It delivers detailed coverage of options, futures, forwards, swaps and risk management and a balanced introduction to pricing, trading and strategy. The financial information throughout this edition reflects recent changes in the derivatives market -- one of the most volatile sectors in the financial world. The Taking Risk in Life feature illustrates the application of risk management in real-world financial decisions. Cengage Learning Testing Powered by Cognero, included in this edition, is a flexible, online testing resource that gives instructors limitless testing possibilities.

Don M. Chance

Don M. Chance, Ph.D., CFA, holds the James C. Flores Endowed Chair of MBA Studies and is Professor of Finance at the E.J. Ourso College of Business at Louisiana State University. He previously held the William H. Wright, Jr. Endowed Chair for Financial Services at LSU, and the First Union Professorship in Financial Risk Management at Virginia Tech. Prior to his academic career, he worked for a large southeastern bank. He has been a visiting scholar at the University of Adelaide (Australia), the University of Strathclyde (Scotland), the University of North Carolina at Chapel Hill, the Korea Advanced Institute for Science and Technology, and the University of Missouri at Kansas City. Dr. Chance is widely published in derivatives and risk management, as well as other areas of finance. He has published numerous articles in academic and practitioner journals and is the author of ESSAYS IN DERIVATIVES: RISK TRANSFER TOOLS AND TOPICS MADE EASY, 2e, and ANALYSIS OF DERIVATIVES FOR THE CFA PROGRAM. He has extensive experience conducting professional training programs, and his consulting practice (Omega Risk Advisors, LLC) serves companies, organizations, and law firms. Dr. Chance is also involved in the development and writing of the derivatives curriculum in the CFA program.

Robert Brooks

Robert Brooks is the Wallace D. Malone, Jr. Endowed Chair of Financial Management at The University of Alabama; president of derivatives consulting firm Financial Risk Management, LLC (www.frmhelp.com); and founding partner of money management firm BlueCreek Investment Partners, LLC (www.bluecreekip.com). The author of numerous articles appearing in both academic and practitioner journals, Dr. Brooks has been quoted in THE WALL STREET JOURNAL, THE NEW YORK TIMES, BLOOMBERG NEWS, and THE BOND BUYER, as well as regional newspapers. He is the author of several books, including BUILDING FINANCIAL RISK MANAGEMENT APPLICATIONS WITH C++. Dr. Brooks has testified in a subcommittee hearing of the U.S. House of Representatives in Washington, D.C., as well as in a field hearing of the Securities and Exchange Commission in Birmingham, Alabama. He also has consulted with money managers, major public utilities, energy companies, auditing firms, corporations, investment bankers, elected municipal officials, and commercial bankers. In addition, Dr. Brooks conducts professional development seminars on various aspects of finance. He earned his B.S. in finance from Florida State University and his Ph.D. in finance from the University of Florida.
  • An update of contemporary market data references, websites and regulatory agencies is included.
  • Secured Overnight Financing Rate (SOFR) has generally replaced the London Inter-Bank Offered Rate (LIBOR) throughout, with some historical references remaining.
  • The text includes updated and improved spreadsheet software with supporting online Appendix E.
  • Located in selected chapters, the Taking Risk in Life feature presents real-life situations, illustrating the application of risk management principles for decisions in general.
  • Making the Connection boxes link chapter concepts to real-world finance using actual market data and business examples.
  • Concept Checks at each chapter’s end help students review key ideas, with solutions available in the book and online for easy self-assessment.
  • Online Appendix B offers curated articles and readings by chapter and topic, plus web links to keep course content current and market-relevant.
  • "Concept Checks" Ensure Student Comprehension: The "Concept Checks" questions at the end of each chapter help students understand the basic materials covered in the text. Solutions to these questions at the end of the book as well as online allow students to check their own comprehension.
1. Introduction.
2. Structure of Derivatives Markets.
Part I: OPTIONS.
3. Principles of Options Pricing.
4. Option Pricing Models: The Binomial Model.
5. Option Pricing Models: The Black-Scholes-Merton Model.
6. Basic Option Strategies.
7. Advanced Option Strategies.
Part II: FORWARDS, FUTURES, AND SWAPS.
8. Principles of Pricing Forwards, Futures, and Options on Futures.
9. Futures Arbitrage Strategies.
10. Forward and Futures Hedging, Spread, and Target Strategies.
11. Swaps.
Part III: ADVANCED TOPICS.
12. Interest Rate Forwards and Options.
13. Advanced Derivatives and Strategies.
14. Financial Risk Management Techniques and Applications.
15. Managing Risk in an Organization.
Appendix A: Solutions to Concept Checks
Appendix B: References.
Appendix C: List of Symbols.
Appendix D: List of Important Formulas.
Glossary.
Index.

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  • ISBN-10: 8214057108
  • ISBN-13: 9798214057101
  • RETAIL £51.50

  • ISBN-10: 821405706X
  • ISBN-13: 9798214057064
  • RETAIL £171.00