Description

The phenomenal growth of derivative markets across the globe indicates their impact on the global financial scene. As the securities markets continue to evolve, market participants, investors and regulators are looking at different way in which the risk management and hedging needs of investors may be effectively met through the derivative instrument. While accepting that derivatives provide a very powerful tool for risk management, it is being recognized that derivatives markets present market participants and regulators with different

• and complex regulatory and control issues which must be adequately addressed if derivatives markets are to gain maintain investor confidence, and if systematic risk is to be contained. Consequently, the approach in the book is to start with the assumption that the reader knows nothing about the subject and then, step by step, reach a level where he has a comprehensive picture of the nature functions and uses of each derivative security. Indeed, the merit of this book is that it gives the reader a fairly complete idea about the functioning of the whole set of financial and non-financial derivatives as well as all the markets for short-term (and long-term) financial instruments. It is therefore hoped that the book will be useful to those members of university and college faculties whose teachings and

research interests lie in the area of management, banking, finance and economics. It may also serve as a reference or supplementary text in graduate and postgraduate courses in the identified areas.

Further, it can be expected to be useful to corporate researchers or financial officers in their understanding of the operations of the derivative markets. However, the depth with which we explore the practice of derivatives markets also makes the book appropriate for every rational investor, including those on the sales and trading side.

Professor Godwin Chukwudum Nwaobi is a world renowned economist and distinguished African scholar. He is a member of the Advisory Council of the Global Finance Forum, Switzerland. A prolific writer, Prof.

Nwaobi has several books and numerous research articles published in books and reputable journals (electronically). His most recent book is entitled “Modern Econometric Modelling For Developing Economies I”. His recent position include Professor of Economics and Head of Department of Economics, Kogi State University, Anyigba, Kogi State, Nigeria, West Africa.

Professor Nwaobi is currently the Research Director, Quantitative Economic Research Bureau Aba, Nigeria West Africa (www. quanterb. org &edire:repec:edi:quantng)