Student Centre | Instructor Centre | Information Centre | Home

Fundamentals of Corporate Finance, 4/c/e

Fundamentals of Corporate Finance, 4/e

Stephen A. Ross, Massachusetts Institute of Technology
Randolph W. Westerfield, University of Southern California
Bradford D. Jordan, University of Kentucky
Gordon S. Roberts, York University

Risk Management: An Introduction to Financial Engineering

Learning Objectives

After studying this chapter in the textbook, you should be able to:

Define the term financial engineering and explain why derivative securities play such a vital role in this process.

List some of the key reasons that would motivate a company to hedge against the risk of an existing position.

Explain how to use a forward contract to hedge.

Compare and contrast futures and forward contracts.

Differentiate between and give examples of currency and interest rate swaps.

Explain how options can be used to hedge against commodity price risk, exchange rate risk and interest rate risk.

2002 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.