Derivatives Markets and Analysis

Derivatives Markets and Analysis by R. Stafford Johnson is an in-depth guide to understanding, valuing, and trading derivative securities across multiple asset classes. As the third volume in the acclaimed Bloomberg Financial Series—following Debt Markets and Analysis and Equity Markets and Analysis—this book provides a rigorous yet accessible foundation for students, professionals, and investors who want to master derivatives in today’s complex financial landscape .

The text is organized into five comprehensive parts. Part I covers futures and forward contracts, including their markets, mechanics, and pricing via the carrying-cost model, with applications to commodities, equity indexes, and interest rate products . Part II explores options markets and strategies, beginning with fundamentals and extending to equity index, futures, over-the-counter, and embedded options. Readers are guided through popular trading strategies and sophisticated hedging techniques .

In Part III, Johnson dives into option pricing, presenting the theoretical foundations of boundary conditions, the Binomial Option Pricing Model, and the Black-Scholes Model, along with advanced discussions on pricing futures, bond, and interest rate options . Part IV examines financial swaps in detail, including interest rate swaps, credit default swaps, and currency swaps, while Part V provides practical appendices on Bloomberg systems and analytical tools .

What sets this book apart is its unique blend of rigorous academic theory with real-world application. Johnson leverages his expertise as both a finance professor and practitioner to show how derivatives are used not only for speculation and hedging but also for financial engineering and portfolio management . Numerous case studies, examples, and Bloomberg screenshots make complex concepts accessible, ensuring that readers gain both theoretical depth and hands-on knowledge.

For finance professionals, traders, and students, Derivatives Markets and Analysis is an indispensable resource. It provides the analytical tools and strategic insights needed to understand futures, options, and swaps in global markets—and to use them effectively in any investment environment.

Contents:

• PART 1: FUTURES AND FORWARD CONTRACTS
• PART 2: OPTIONS MARKETS AND STRATEGIES
• PART 3: OPTION PRICING
• PART 4: FINANCIAL SWAPS
• PART 5: SUPPLEMENTAL APPENDIXES

Derivatives Markets and Analysis By R. Stafford Johnson pdf