ESCP Europe

Mastering Financial Calculations shows you how to understand and apply the financial arithmetic necessary to work with the full range of products in the capital markets, foreign exchange, money markets and derivatives. Written for anyone working in financial institutions, studying the financial markets or working towards the ACI Dealing Certificate and Diploma exams, the book provides a solid grounding in the calculations behind financial instruments. Thoroughly updated throughout with extra calculations and formulas, the third edition of this bestseller now includes: A chapter on equities which complements existing chapters on short and long-term interest rate instruments, foreign exchange and commodities An overview of credit derivatives and their basic structures A significantly expanded and updated glossary A new chapter on statistics Access to Microsoft Excel spreadsheets containing formulas and calculation methods which can be downloaded at www.Markets-International.com from back cover.

Introduction --- PART 1 THE BASICS --- 1: Financial arithmetic basics --- 2: Statistics basics --- PART 2 INTEREST RATE INSTRUMENTS --- 3: The money market --- 4: Forward-forward interest rates and Forward Rate Agreements (FRAs) --- 5: Interest rate futures --- 6: Bond market calculations --- 7: Repos, buy/sell-backs and securities lending --- 7: Zero-coupon rates and yield curves --- PART 3 FOREIGN EXCHANGE --- 8: Foreign exchange --- PART 4 SWAPS AND OPTIONS --- 10: Interest rate and currency swaps --- 10: Options --- Part 5 EQUITIES --- 12: Equities ---PART 6 GOLD AND OTHER COMMODITIES --- 13. Gold and other commodities --- PART 7 HINTS AND ANSWERS TO EXERCISES --- 12: Hints and answers to exercises..