TITLE
FINANCIAL DERIVATIVES
: The Currency and
Rates Factor
AUTHOR
Divik Maheshwari
Aman Chugh
ISBN
9788131774335
/
Forward By Mr Sanjeev Bajaj ,
Managing Director and
Head of Credit Suisse
AG, Mumbai Branch
Publishing
Date
August 2011
Publisher
Pearson
About the Book
•
To be financially literate in today’s market, students and professionals in the field of finance must
have a solid understanding of the concepts, instruments and application of financial derivatives.
•
This text offers a broad based introduction to financial derivatives and covers both the technical
aspects of these instruments and information about the markets in which they are traded. The text
balances rigor and accessibility through a clear writing style, a graduated mathematical treatment,
and an integration of numerous examples and worked out activities to illustrate the application of
techniques and facilitate self-assessment.
•
This book on Derivatives is a complete text book/Advance Academic Book/Reference book for
University/Colleges/Professional Courses in Finance Specialization including
– Chartered Accountancy(CA)
– MBA (Finance)
– Certified Financial Analyst(CFA)
– NCFM/NISM organized by National Stock Exchange of India.
About the Author – Divik Maheshwari
•
Divik Maheshwari is presently Vice President in Fixed Income Division within
Investment Banking vertical of Credit Suisse AG (a top-tier Global Investment Bank) in Mumbai
dealing across vanilla and hybrid product suites comprising foreign exchange, interest rate, credit,
commodity and equity markets. He has been advising and executing risk management and
derivative solutions for large capital and mid-capital corporates and MNCs.
•
Prior to this, he has worked with Deutsche Bank which is an another top-tier Global
Investment Bank. He also had stints with Kotak Mahindra Bank, ICICI Bank and Tata Consultancy
Services which are among the renowned and top notch Indian companies.
•
Divik possesses a decade of experience in Financial Markets and is a specialist in currency and
interest-rate derivatives, and technical charting. He has also conducted training programs at various
forums across the country.
•
Divik is a qualified Chartered Accountant, Company Secretary and Financial Risk Manager (FRM,
USA). He has been honored with Gold Medal and Scholarships by The Institute of Company
Secretaries of India (ICSI) for securing All India Ranks (First in CS Foundation and Second in CS Final).
He has also been awarded with ‘Preeti Puraskar’ and ‘Sultan Chand Trust Prize’ by the ICSI.
About the Author – Aman Chugh
•
Aman Chugh, one of the youngest chartered accountants of India, has vast experience and
expertise in currency and interest rates derivative markets. His expertise comes from working as
Regional Head (North Region) of FX Channels in Global Markets Group of ICICI Bank. He is one of
the youngest advisors to the Capital Markets Study Group of Northern India Regional Council of The
Institute of Chartered Accountants of India and is also on the panel of trainers providing training in
the domain of derivative markets on behalf of ICICI Group. In the past, he has been associated with
PriceWaterHouse Coopers,Ernst & Young and General Electric (India and USA). Having worked in
industry, consulting and banking, he possesses experience in the fields of auditing, business
valuation, corporate restructuring (including mergers and acquisitions), corporate finance, foreign
exchange and risk management.
•
He conducts and provides consultancy/corporate trainings in Fortune 500 companies and other
reputed organizations/associations such as LIC, Punjab National Bank, Alcatel Lucent, Telmar (a Jabil
group company), Ascendas, Aricent, Apparel Export Promotion Council, Million Dollar Round Table
(MDRT), Ministry of Labor and Employment, and study circles of The Institute of Chartered
Accountants of India and The Institute of Company Secretaries of India.
•
He has also been associated in the capacity of visiting faculty/guest speaker with many highly rated
B-Schools, institutes and universities such as Indian Institute of Technology, New Delhi, Sri Ram
College of Commerce, University of Delhi, Indian Institute of Foreign Trade and Indian Institute of
Planning and Management. He has been awarded with the “Best Faculty Awards” and “Outstanding
Contribution to the Cause of Education Awards” by various Institutes and Universities.
Features of Book
•
Focuses primarily in foreign exchange and interest rate derivatives, which accounts for ~ 90% of the
global derivative market turnover. Other asset classes in the balance ~ 10 % include Equity,
Commodity and Credit Derivatives.
•
Includes vanilla and exotic structured products on foreign exchange and interest rate derivatives,
which are executed globally by investors, hedge funds and banks.
•
Features screenshots from Thomson Reuters displaying among others, live currency and rates
market as they appear to professional traders, historical charts displaying economic data releases
and calculators which traders use to price options.
•
Elucidates theory with real life practical examples and case studies which emerges from authors'
rich experience while working with global investment banks.
Contents of Book
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
Universe of Derivatives - Facts
Derivatives Introduced – Indian Perspective
OTC FX Concepts
ETC FX Concepts
FX Options – Concepts
FX Options – Valued
FX Options – Structured Solutions
Interest Rate Product – Vanilla to Exotic
Money Market: The FX Impact
Indianomics
Fundamental Analysis & Data Releases
Technical Analysis
ISDA Agreement - Documenting Derivatives
Reviews from Experts
The book Financial Derivatives is written by Aman Chugh and Divik Maheshwari in such a manner that
even a novice in the field of finance will be able to grasp the concepts with ease. The book has a very
user friendly approach and style of presentation. It is a must-have for every individual involved in the
field of derivatives.
V. P. Bharadwaj, Joint Secretary, Ministry of Finance, Government of India
This book has a unique and an unparalleled effort in the area of foreign exchange and interest rate
derivative by the authors who have tremendous experience in this area. I would recommend this book
as a must-read to all students of Finance and Corporate Houses who wish to hedge their exposure
against adverse foreign exchange and interest rate movements.
D. G. Kale, General Manager, Reserve Bank of India
On behalf of Northern India Regional Council of The Institute of Chartered Accountants of India, I would like to
congratulate the authors, Aman Chugh and Divik Maheshwari, for coming up with one of the fi nest and unique
books on the contemporary topic of Financial Derivatives. The manner and depth with which concepts have
been covered speaks about their wide and end-to-end experience and expertise which they have gained while
working practically on the said
subject matter.
CA (Dr) Durga Das Aggarwal, Chairman, Northern India Regional Council, ICAI
Reviews from Experts
As the global financial markets hurtle from one to another crisis, the uncertainty and resultant volatility
has been on the rise, especially after the financial crisis of 2008. The capital mobility across the world at
frenzied pace has resulted in alternating bouts of risk accumulation, and risk aversion tends to resemble
seasonal weather changes. It is prudent for any practitioner to hold strong background knowledge of
the markets to comprehend the undercurrents and to understand the dynamics. Both the authors have
excellent understanding of the markets and it is indeed creditable that they have come up with a lucid
analysis of all the relevant information pertaining to the fi nancial derivatives which would be a useful
depository of knowledge.
Venkat Thiagarajan, Senior Vice President and Head Treasury (FOREX), Reliance Industries Limited
The current and earlier crises have brought forex - and treasury-related operations under the direct
pursuit of the CFOs.This book can guide CFO’s in understanding the markets tracking the factors
impacting their treasury operations and core business. India’s focused approach and knowledge
dissemination would help to a greater extent the finance professionals and the corporate treasuries in
monitoring the balance sheets, factors affecting them and taking appropriate steps in time. The book
should also help management students in thorough understanding the impacts of various economic
events and data releases on the currencies and interest rates which otherwise are available only in
Advanced Treasury Training Courses.
T. Venkatesan, Head, Corporate Forex Treasury, Tata Consultancy Services
Reviews from Experts
This book is a stimulating read with an excellent overview of risk and rewards in derivatives, especially
in the Indian context. Complex and challenging derivative concepts have been lucidly explained so that
even a novice in the field of finance would be able to grasp the contents with ease. The book is a musthave for every individual involved in the field of derivatives and finance in general.
R. Govindan, General Manager, Corporate Finance, Larsen and Toubro
This book is one of the fi nest books I have ever come across on foreign exchange and interest rates
market. Here comes a masterpiece which puts an end to the search for a comprehensive book on the
complex and dynamic world of derivatives.
Ram Subramonian, Vice President, Treasury (Foreign Exchange), Reliance Industries Ltd.
This book is highly recommended for very practical approach, explaining complex world of forex markets and
derivatives duly supported by interesting charts and market data. Sequence of topic has been carefully
structured to provide seamless understanding of concepts for beginners as well as practicing treasurers.
Vineet Sood, Senior Vice President, Treasury, HCL
The book is so well written that even a novice in the field of finance will be able to grasp the concepts with
ease. It has highly user friendly approach and style of presentation. It gives a great insight about the depth and
significance of derivatives markets. It is a must-have for every individual involved in the field of derivatives.
Ramaswami Sivakumar, General Manager, Treasury, Wipro
Reviews from Experts
I found this book very informative, insightful and would surely be a compelling read for both students and
professionals. It would also be a market practitioners’ reference book. The illustrations in the form of relevant Thomson
Reuters screenshots and solved numericals are succinct and comprehensive.
Further, the section on India is highly informative about linkages in money markets and macro variables. Derivatives
have been truly unlocked for readers.
Partha Bhattacharyya, Group Treasurer, Essar Group
It was high time someone explained derivatives in the context of Indian Financial Markets. This book has done this
perfectly. It is a rare mixture of fundamental concepts and practical application specific to Indian markets.
Y. Kiran, Treasury, Dr Reddy’s Laboratories Ltd.
The book Financial Derivatives is incisive, practical oriented and comprehensible for even an uninitiated student. The
book will be an invaluable guide for all those who have a quest for learning the matter of topical interest. I congratulate
the authors for the thoughtful publication.
Suresh Kumar, CFO, Ruchi Group
This book comprehensively takes care of all the technical aspects of the subject matter of Foreign Exchange and
Rates Market which is very diffi cult to fi nd under one umbrella. I convey my best wishes to both the authors
for their amazing work. To put it shortly, I should say that the book is “Treasury Made Easy by a Practicing
Treasurer”.
K. Vasudevan, General Manager, Treasury, Ruchi Soya Industries Limited
Reviews from Experts
I am deeply impressed by the contents of this book. Most of the complex issues like Forex Markets Products,
Derivatives and Technical Analysis have been defi ned in a simple and easy to understand way. The authors have used
their rich professional experience to provide insights of forex and derivatives markets. In my view, this book will be an
excellent ready reckoner for beginners as well as practitioners in the fields of forex and derivatives.
Jitendra Jain, CFO, Corporate Finance, GMR Group
I must say that this book is one of the fi nest books on derivatives written with Indian as well as global focus. The book
can be used as a guide by the corporate world in hedging their foreign exchange and interest rates exposure. Such a
master piece of work has been possible because of author’s practical exposure to these markets and I recommend this
to all those who seek to know and understand Foreign Exchange and Interest Rate Market ‘AS IT IS’.
Rajiv Bahl, General Manager (Finance) Treasury, Indian Oil Corporation Limited
The book Financial Derivatives is an extremely practical and great guide to anyone entering currency markets and also
to those already working in this fi eld. Concepts are very well defi ned and it includes lot of real-life examples, which are
very handy to understand the true concepts underlying currency markets. I highly recommend this book to beginners in
the currency markets as well as to seasoned professionals.
Girish Kumar Dua, General Manager (Finance), Maruti Suzuki India Limited
I sincerely feel that the topics covered are exhaustive and relevant for the current derivative users at large. The
complexities of derivatives become easy through mathematical engineering, graphs and illustrations.
Mukesh Khandelwal, Vice President, Finance and Commercial, Welspun Group
Thank You