The recent development in the financial sector has made the derivatives market more attractive. This market grew manifold within three decades. Today, a number of different derivative instruments are being developed and used. This book provides a detailed account of the latest innovations in the field of derivative instruments with a special focus on commodities derivatives.

It is beyond doubt that the financial derivatives market is by far the largest and the most powerful market in the world and it is growing exponentially. With the gradual acceptance of these products in 1970, the yearly valuation of financial derivatives was only a few million dollars, which radically had swollen to nearly $100 mn by 1980. By 1990, it soared to almost $100 bn, and in 2000 it neared $100 tn. The growth of the derivatives market took place when the interest rate volatility increased sharply during the 1970s which compelled firms to seek various alternatives to cover their risks arising out of interest rate fluctuations. This development was revolutionized by the establishment of the epoch-making Black-Scholes model named appropriately after its founders. Since then, the developments in the field of derivatives have attracted both academicians and users of these instruments for a commercial purpose. This book provides a detailed understanding of the latest innovations in the field of derivative instruments with special focus on commodities derivatives.

It is quite obvious that a corporate manager or an executive probably has little contact with the actual day-to-day trading of derivatives contracts and the continuous developments that take place in the derivatives markets. Bestowing responsibilities in the hands of the traders can prove to be disastrous. One is not aware of what they are up to. This calls for a practitioner's understanding of these complex financial instruments. This book provides the reader with a concise, uncomplicated, often entertaining, and a basic understanding and appreciation for these complex yet powerful financial tools. This book is not among the many "how-to-trade" book. Instead, it avoids technical jargons and mathematical formulae and brings the world of derivatives instruments to your reading table. From the simple option products to catastrophe bonds, the book provides a basic appreciation of how derivatives operate and where the dangers lie. While it may be the quantitative specialists and traders who make the costly errors, it is the managers and executives who ultimately answer to the authorities.

Portfolio Organizer Magazine, Financial Sectors, Derivatives Market, Commodities Derivatives, Financial Derivatives Market, Derivative Instruments, Catastrophe Bonds, Foreign Exchange Derivatives Market, Risk Management Strategy, Financial Markets, Indian Banking Sector, Financial Products, Indian Commodities Markets, Risk Management System.