prolog

Chapter 1: Understanding Financial Engineering
1-1 What is financial engineering?
1-2 What are derivatives?
1-3 Characteristics of Derivatives
1-4 Types of Derivatives
1-5 What is Risk?
1-6 Fundamentals of Risk Management
Column: Superstars of the Derivatives Market

Chapter 2: Understanding Derivatives
2-1 Derivatives originated in ancient Greece?
2-2 Is the Satcho Alliance a kind of swap transaction?
2-3 interest rate
2-4 rings
2-5 stocks, commodities, credit
A Rocket Engineer Who Got a Job at a Bank
2-6 Gift Trading
2-7 Leading Transactions
2-8 Interest Rate Swap
2-9 currency swap
2-10 options
2-11 Credit Derivatives
2-12 Other derivatives transactions
Column Derivatives are weapons of mass destruction

Chapter 3: Two Axis of Derivatives Pricing Theory
3-1 The value of the amount varies depending on the point in time
3-2 What interest rate will be applied?
Convert to 3-3 spot rate
3-4 Principle of Equivalent Exchange
How is the 3-5 premium determined?
3-6 What is Volatility?
Calculation of 3-7 variant options./.
3-8 Black-Scholes Model
3-9 Testing the Real Black-Scholes Model in Excel
3-10 How to Use the Black-Scholes Model
3-11 Suitability to the Real Market
Column Derivative Product Name

Chapter 4: Understanding the Basics of Risk Management
4-1 Basic Concepts of Risk Management
4-2 Value at Risk Calculation Method
4-3 Limitations and Challenges of Risk Management

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References

Can you even trade earthquake risks or presidential election predictions?
What are the principles of forward trading as seen through the Dutch tulip speculation?
Derivatives originated in ancient Greece?

If the various concepts and cases introduced in Chapters 1 and 2 of this book provided an easy approach to financial engineering and derivatives theory, Chapter 3 covers derivatives pricing theory, a core area of ​​financial engineering, allowing you to delve into economic principles closely related to real markets.
In the following four chapters, we will examine the fundamentals of risk management, consider the limitations of financial engineering, and consider the challenges facing financial engineering and ourselves in the future.

Financial engineering is a type of comprehensive engineering that requires not only financial knowledge but also various mathematical techniques such as probability, statistics, and calculus.
It may seem difficult at first glance, and there are certainly some difficult parts, but the concept itself is logical and simple.
The concept of risk management, which aims to objectively measure the probability of loss, can be applied in fields other than finance.


We experience countless principles and examples of financial engineering in our daily lives, yet we still find it difficult.
In "Financial Engineering: A Light Reading," the core of financial engineering is explained in an easily accessible way for anyone who wants to understand financial transactions, using core financial engineering cases found in everyday life, historical events from the past, diagrams, pictures, and columns.