In addition you will meet the currency swap, one of the most widely used financial derivatives. Chapter 14 covers interest rate derivatives, which are your first derivatives that are not based on the price of a security, but rather on an interest rate. These are among the most actively traded, and herein you will learn about the most popular derivative, the interest rate swap. Chapter 15 covers some advanced topics and strategies, which are mostly extensions of previous topics and strategies. Chapter 16 is the capstone chapter and deals with a broad range of topics on risk management.
Derivative instruments allow the efficient buying and selling of risk.
In this chapter we learn more about how companies manage this risk. In addition we cover a variety of related topics and get a chance to see how some companies have done a poor job of managing risk. You never lose touch with the real world. Minimal use of technical mathematics. While derivatives is unavoidably a technical subject, calculus is not necessary to learn the material at this level.