preface preface to the first edition acknowledgements abbreviations used in this book section I: financial derivatives background 1. Financial derivatives: an introduction 2. Futures market and contracting 3. Forward market: pricing and trading mechanism 4. Futures pricing: theories and characteristics section II: financial derivatives scenario 5. Financial derivatives markets in India 6. Regulation of financial derivatives in India section III: specific financial futures and forwards 7. Hedging strategy using futures 8. Stock index futures 9. Forward rate agreements 10. Short-term interest rate futures 11. Long-term interest rate futures 12. Foreign currency futures 13. Foreign currency forwards section IV: financial swaps 14. Swaps markets 15. Pricing and hedging of swaps section V: options derivatives 16. The options—the basics 17. Option pricing models 18. Trading with options 19. Hedging with options 20. Currency options section VI: other derivatives 21. Advanced financial derivatives 22. Credit derivatives 23. Real options 24. Commodity derivatives market section VII: financial derivatives—miscellaneous issues 25. Accounting and taxation of Derivatives 26. Risk management in derivatives answers to unsolved problems appendices glossary bibliography index.