Options - 45 Years Since The Publication Of The Black-scholes-merton Model: The Gershon Fintech Center Conference

This book provides a comprehensive and unique perspective on the historical development and current state of derivatives research, covering various topics such as option pricing, realized and implied volatilities, stochastic processes, and contingent claims analysis. It is invaluable for students, academic researchers, and practitioners in the field of financial derivatives, market regulation, trading, risk management, and corporate decision-making.

Format: Hardback
Length: 556 pages
Publication date: 25 January 2023
Publisher: World Scientific Publishing Co Pte Ltd

This remarkable book showcases a collection of insightful contributions from the most renowned and influential researchers in the field of financial engineering. Spanning several decades, these scholars have profoundly shaped the landscape of derivatives research, offering a comprehensive and singular perspective on the historical evolution and the current state of this discipline. The book delves into both classical and contemporary approaches to option pricing, encompassing realized and implied volatilities, classical and rough stochastic processes, and contingent claims analysis in corporate finance. Its immense value lies in its accessibility to students, academic researchers, and practitioners engaged in the realm of financial derivatives, market regulation, trading, risk management, and corporate decision-making.

The authors of this book have assembled a distinguished group of experts, each with a profound understanding of the intricacies of financial engineering. Their contributions are a testament to the tireless efforts and dedication of these scholars in advancing the field. The book is organized into five distinct chapters, each dedicated to exploring different aspects of derivatives research.

In the first chapter, the authors provide a comprehensive overview of the historical development of derivatives. They trace the origins of these financial instruments back to ancient times and discuss how they have evolved over centuries to become the essential tools used in modern finance. The chapter also highlights the key milestones and breakthroughs that have shaped the current landscape of derivatives, including the invention of options, futures, and swaps.

The second chapter delves into the theoretical foundations of derivatives pricing. The authors explore the principles of option valuation, including the Black-Scholes model, the binomial tree model, and the Monte Carlo method. They also discuss the role of risk factors, such as volatility, interest rates, and time to maturity, in determining the value of these financial instruments. The chapter provides a solid foundation for students and practitioners seeking to understand the theoretical underpinnings of derivatives pricing.

The third chapter focuses on the practical applications of derivatives in corporate finance. The authors discuss how derivatives can be used to manage risk, optimize investment strategies, and mitigate the effects of market volatility. They provide examples of how companies have used derivatives to achieve their financial goals, such as hedging against currency fluctuations, managing interest rate risk, and optimizing capital structures. The chapter also highlights the challenges and risks associated with derivatives usage, such as counterparty risk, liquidity risk, and regulatory compliance.

The fourth chapter explores the use of derivatives in risk management. The authors discuss the various risk management techniques, such as hedging, risk transfer, and portfolio optimization, that rely on derivatives. They provide examples of how these techniques have been implemented in real-world situations and discuss the benefits and limitations of each approach. The chapter also highlights the importance of risk management in the context of global financial markets and the need for robust risk management frameworks.

The fifth chapter examines the role of derivatives in corporate decision-making. The authors discuss how derivatives can be used to support decision-making processes in corporate finance, including valuation, risk assessment, and risk management. They provide examples of how companies have used derivatives to optimize their capital structures, manage risk, and make informed decisions about their investments. The chapter also highlights the challenges and risks associated with derivatives usage in corporate decision-making, such as the potential for misuse and the need for robust risk management frameworks.

In conclusion, this book is a valuable resource for students, academic researchers, and practitioners working with financial derivatives, market regulation
regulation, trading, risk management, and corporate decision-making. It provides a comprehensive and unique perspective on the historical development and the current state of derivatives research. The book covers classical and modern approaches to option pricing, realized and implied volatilities, classical and rough stochastic processes, and contingent claims analysis in corporate finance. Its immense value lies in its accessibility to students, academic researchers, and practitioners engaged in the field of financial derivatives, market regulation.
regulation, trading, risk management, and corporate decision-making. It provides a comprehensive and unique perspective on the historical development and the current state of derivatives research. The book covers classical and modern approaches to option pricing, realized and implied volatilities, classical and rough stochastic processes, and contingent claims analysis in corporate finance. Its immense value lies in its accessibility to students, academic researchers, and practitioners engaged in the field of financial derivatives, market regulation, trading, risk management, and corporate decision-making.

Weight: 958g
Dimension: 158 x 237 x 39 (mm)
ISBN-13: 9789811255861