Introduction and Structure of the Book.
PART ONE: The Economics of Risk Transfer.
CHAPTER 1: The Determinants of Financial Innovation.
CHAPTER 2: Risk, Uncertainty, and Profit.
CHAPTER 3: Methods of Controlling Risk and Uncertainty.
CHAPTER 4: Risk Transfer and Contracting Structures.
CHAPTER 5: The Evolution of Derivatives Activity.
CHAPTER 6: Derivatives Trading, Clearance, and Settlement.
PART TWO: Derivatives Valuation and Asset Lending.
CHAPTER 7: Principles of Derivatives Valuation.
CHAPTER 8: Own Rates of Interest and the Cost of Carry Model.
CHAPTER 9: The Supply of Storage and the Term Structure of Forward Prices.
CHAPTER 10: The Term Structure of Interest Rates.
CHAPTER 11: Basis Relations and Spreads.
PART THREE: Speculation and Hedging.
CHAPTER 12: Speculation and the Speculative Risk Premium.
CHAPTER 13: Hedging Objectives.
CHAPTER 14: Hedge Ratios.
CHAPTER 15: Quality Basis Risk.
CHAPTER 16: Calendar Basis Risk.
PART FOUR: Appendixes.
APPENDIX 1: Economic Theory and Equilibrium.
APPENDIX 2: Derivation of the Fundamental Value Equation.
APPENDIX 3: Relation between the Cost of Carry Model and the Fundamental Value Equation.