THE ROLE OF FINANCIAL DERIVATIVES IN FINANCIAL RISKS MANAGEMENT

The Role of Financial Reporting in Reducing Financial Risks in the Market

Increased globalization of financial and product markets has raised the interest of both market participants and regulators in the quality of financial reporting worldwide. The rise in the volatility of stock returns across the globe in the past couple of years has also been a concern. Could greater transparency in financial statement information reduce volatility and produce more accurate stoc...

Financial Risks: Cases Of Non-Financial Enterprises

Global Financial Risks, CVaR and Contagion Management

The September 2008 collapse of Lehman Brothers was the 9/11 on Wall Street, and many articles had been written on the changes in the global risk landscape that followed. However, there is scarcity of rigorous studies using empirical data and advanced econometric methods to verify such a change and the nature of such a change. In this paper, we provide rigorous analyses of statistically signific...

Financial Derivatives

The Merriam-Webster dictionary defi nes a derivative in the fi eld of chemistry as " a substance that can be made from another substance. " Derivatives in fi nance work on the same principle. These fi nancial instruments promise payoffs that are derived from the value of something else, which is called the " underlying. " The underlying is often a fi nancial asset or rate, but it does not have ...

Application of Mathematics in Financial Management

The Time Value of Money is a important concept in Financial Management. The Time Value of Money includes the concepts of future value and discounted value or present value. In the present article, the basic notions and illustrate with their application in the field of investment which is presented in the mathematical terms in form of theorems and we also presented the applications of some well ...