Key financial market concepts : the 100 terms every finance professional needs to know / Bob Steiner.

Format:

Book

Author/Creator:

Steiner, Bob.

Language:

English

Subjects (All):

Finance.

Physical Description:

xv, 310 pages : color illustrations ; 24 cm

Edition:

Second edition.

Place of Publication:

Harlow, England ; New York : Financial Times/Prentice Hall, [2011]

Summary:

Understanding financial concepts, formulas and definitions is critical for anyone who wants to succeed in the finance markets. It's not enough just to have heard of a phrase or a term: as a successful business professional you'll need to understand them, know how they work and how to use them to full effect.

Key Financial Market Concepts is the ultimate reference tool for anyone working in the finance industry, explaining the 100 essential financial market terms. It provides you with a definition of what each concept is, how it works, when it is likely to arise, how it's calculated and how best to, use it. You'!! also get access to many of the formulas used, already programmed into a Microsoft Excel spreadsheet, for your own personal use. Book jacket.

Contents:

Time Value of Money 1

Simple Interest and Compound Interest 3

Equivalent Rate, Effective Rate and Continuously Compounded Rate 6

Future Value (FV), Present Value (PV), Rate of Discount and Discount Factor 10

Net Present Value (NPV), and Internal Rate of Return (IRR) 14

Money-weighted and Time-weighted Rates of Return 17

Annuity 20

The Money Markets 25

Certificate of Deposit (CD), Commercial Paper (CP), Treasury Bill, True Yield and Discount Rate 27

Values Dates, Interpolation and Extrapolation 33

Zero-coupon Yield and Yield Curve 37

Zero-coupon Yield, the Spot Yield Curve and Bootstrapping 39

The Par Yield Curve 45

The Forward-forward Yield Curve 48

Forward-forwards, FRAs and Futures 53

Forward-forward Interest Rate 55 Forward Rate Agreement (FRA) 58

STIR Futures Contract and Margin 63 Basis Risk 70

Spread, Butterfly Spread and Condor 72

Strip 77

The Bond and Repo Markets 81

Accrued interest, Clean Price and Dirty Price 83

Money Market Basis and Bond Basis 88

Yield to Maturity (YTM) 92

Current Yield and Simple Yield to Maturity 95

Zero-coupon Security and Strip 98

Asset-backed Securities (ABS), Mortgage-backed Securities (MBS), Collateralised Debt Obligations (CDO) and Covered Bonds 101

Bond Futures, Conversion Factor and CheapesMo-deliver (CTD) 104

Cash-and-carry Arbitrage and implied Repo Rate 110

Duration, Modified Duration, Price Value of a Basis Point (PVB),DV01 and Convexity 115

Hedge Ratio 122 Repo and Reverse Repo 125

Haircut and Margin 131 Buy/sell-back and Sell/buy-back 135

Securities Lending/Borrowing 139

The Swaps Market 143

Interest Rate Swap (IRS) 145

Asset Swap and Liability Swap 149

Overnight Index Swap (OIS) 157

Currency Swap 161

Foreign Exchange 167

Forward Outright and Forward Swap 169

Cross-rate 178

Short Dates 183

Forward-forward Exchange Rate 186

Non-deliverable Forward (NDF) 188

Options 191

Calls and Puts 193

The Black and Scholes Pricing Mode! 198

Historic Volatility and Implied Volatility 203

Binomial Pricing Model 206

The Put/Call Parity 210

Cap, Floor, Collar and Zero-cost Option 213

Break Forward, Range Forward and Participation Forward 217

Option Trading Strategies: Straddle, Strangle, Spread, Butterfly, Condor, Ratio Spread and Risk Reversal 223

Barrier Options: Knock-out Option and Knock-in Option 233

Credit Derivatives, CDS, Synthetic CDO and First-to-default Baskets 236

The 'Greeks'; Delta, Gamma, Vega, Theta and Rho 243

Statistics 251

Mean, Median and Mode 253

Variance and Standard Deviation 255

Correlation and Covariance 259

Probability Density and the Normal Probability Function 262

Risk Management and Investment Management 269

Value at Risk (VaR) 271

The Capital Adequacy Ratio 276

Efficient Markets Hypothesis 280

Appendices 283.

Notes:

Includes index.

ISBN:

9780273750123

0273750127

OCLC:

709672065