Derivatives As Efficient Risk Management Instruments Application To Commodity Markets

Masterarbeit aus dem Jahr 2011 im Fachbereich BWL - Bank, Börse, Versicherung, Hochschule Fulda, Sprache: Deutsch, Abstract: The following categorized introduction attempts to give an intelligible overview of the present Master Thesis. At first the purpose of this study will be explained, including the illustration of the importance of a commodity risk management for companies as well as the rising importance of commodity markets. Additionally the stakeholders and objectives will be presented, followed by a comprehensive structure of this Thesis.

Books on complex hedging instruments are often more confusing than the instruments themselves. Hedging Instruments & Risk Management brings clarity to the topic, giving money managers the straightforward knowledge they need to employ hedging tools and techniques in four key markets—equity, currency, fixed income, and mortgage. Using real-world data and examples, this high-level book shows practitioners how to develop a common set of mathematical and statistical tools for hedging in various markets and then outlines several hedging strategies with the historical performance of each.

Commodity Risk Management goes beyond just an introductory treatment of derivative securities, dealing with more advanced topics and approaching the subject matter from a unique perspective. At its core lies the concept that commodity risk management decisions require an in-depth understanding of speculative strategies, and vice versa. The book offers readers a unified treatment of important concepts and techniques that are useful in applying derivative securities in the management of risk in commodity markets. While some of these techniques are well known and fairly common, Poitras offers applications to specific situations and links to speculative trading strategies - extensions of the material that not only are hard to come by, but helpful to both the academic and the practitioner. The book is divided into three parts. The first part deals with the general framework for commodity risk management, the second part focuses on the use of derivative security contracts in commodity risk management, and the third part deals with applications to three specific situations. As a textbook, this book is designed to appeal to classes at a senior undergraduate/MBA/MA levelof training in Finance, financial economics, actuarial science, management science, agriculturaleconomics and accounting. There will also be interest for the book as: a monograph for research libraries, a handbook for individuals working in the commodity risk management industry, and a guidebook for those in the general public interested in topics like farm risk management or the assessment of hedging practices of publicly-traded commodity producers.

Uncontrolled risks may lead to disaster. Uncertainties in prices should be managed in line with needs that are not uncertain.Starting with some educational information, then through Commercial and Financial practice examples, this book explains that by eliminating some risks, strong commercial activities and investments can be made and a solid future can be built. Fabrizio Casaretto, an Italian and French Levantine native to Istanbul, received his degree in Econometrics in France. After a brief experience in insurance, he broke into the world of Commodity Trading with Cargill. After several years of trading physical products and hedging with derivative tools, he has moved into the Energy sector to trade Fuels. Working in Turkey, a market with high volatility in commodity prices and currencies, he has mastered his hedging skills. Eventually, he made founding partner to a portfolio management company.Currently, Casaretto trades solid fuels and provides risk management consultancy to industries and trading companies. He is also a private consultant in derivative markets to a law firm and an instructor at a local University. He has decided to write this book in order to share his knowledge with professionals in commodity and financial markets, and also to be helpful to students aiming a career in this field."Learning financial risk management has become a prerequisite to protect your money in volatile financial markets, or at least to limit the losses you might incur.(...) This book will take the reader beyond financial literacy." Ali Agaoglu / Columnist, Vatan Newspaper"This is a wonderful guidebook on using complicated financial instruments such as derivatives instruments, which are more and more commonly encountered in our risk-laden world. (...)"Prof. Dr. Erdinc Altay / Istanbul University, Faculty of Economics"Futures and options contracts are the sine qua non of Risk Management, (...) this book has filled an important void in this area."Mustafa Yaman Basaran / Former Deputy General Manager of Futures and Options Exchange (VOB)

Robert Whaley has more than twenty-five years of experience in the world of finance, and with this book he shares his hard-won knowledge in the field of derivatives with you. Divided into ten information-packed parts, Derivatives shows you how this financial tool can be used in practice to create risk management, valuation, and investment solutions that are appropriate for a variety of market situations.

19.1. Numerical analysis and simulation techniques : an introduction to finite difference methods. 19.2. Application to European options on non-dividend paying stocks. 19.3. Valuation of American options with a composite volatility. 19.4. Simulation methods : Monte-Carlo method. ch. 20. Numerical methods and partial differential equations for European and American derivatives with complete and incomplete information. 20.1. Valuation of American calls on dividend-paying stocks. 20.2. American puts on dividend-paying stocks. 20.3. Numerical procedures in the presence of information costs : applications. 20.4. Convertible bonds. 20.5. Two-factor interest rate models and bond pricing within information uncertainty. 20.6. CBs pricing within information uncertainty -- pt. VIII. Exotic derivatives. ch. 21. Risk management : exotics and second-generation options. 21.1. Exchange options. 21.2. Forward-start options. 21.3. Pay-later options. 21.4. Simple chooser options. 21.5. Complex choosers. 21.6. Compound options. 21.7. Options on the maximum (minimum). 21.8. Extendible options. 21.9. Equity-linked foreign exchange options and quantos. 21.10. Binary barrier options. 21.11. Lookback options. ch. 22. Value at risk, credit risk, and credit derivatives. 22.1. VaR and riskmetrics : definitions and basic concepts. 22.2. Statistical and probability foundation of VaR. 22.3. A more advanced approach to VaR. 22.4. Credit valuation and the creditmetrics approach. 22.5. Default and credit-quality migration in the creditmetrics approach. 22.6. Credit-quality correlations. 22.7. Portfolio management of default risk in the Kealhofer, McQuown and Vasicek (KMV) approach. 22.8. Credit derivatives : definitions and main concepts. 22.9. The rating agencies models and the proprietary models.