Derivatives Markets, Second Edition, provides a solid understanding of derivatives concepts and instruments and the varied uses of those instruments and the underlying pricing principles. The book has an accessible mathematical presentation, and provides intuition by linking theories and concepts together with an engaging narrative that emphasizes the core economic principles underlying the pricing and uses of derivatives. Concrete applications complement the pricing discussions. In particular, chapters on financial engineering, corporate applications and real options all illustrate pricing and instrument design in the context of practical problems. Excel spreadsheets, packaged with the book, contain option pricing functions written in VBA, with code that users can view and modify. Linear Factor Models in Finance Description: Linear Factor Models in Finance develops the building blocks for one of the most important theories of ...