Financial Derivatives: A Blessing or a Curse?

Financial Derivatives have long been a subject of debate, with some seeing them as a useful instrument and others as a waste of time and money. Simon Grima and Eleftherios I. Thalassinos' book explores the theory and debates surrounding this controversial topic, including real-world case studies on financial firms and non-financial firms. It examines the roots of firm failure and large losses and asks whether it is the misuse of this financial instrument or the derivatives instrument itself that is the cause.

Format: Hardback
Length: 248 pages
Publication date: 17 February 2020
Publisher: Emerald Publishing Limited

Financial derivatives have sparked intense debates, with opinions ranging from their utility to their perceived wastefulness. While some view them as valuable tools, others condemn them as a futile endeavor. The question remains: should we embrace financial derivatives or fear them? In their comprehensive book, "Financial Derivatives: A Blessing or a Curse?" Simon Grima and Eleftherios I. Thalassinos delve into the theory and controversies surrounding these instruments. They begin by examining the perceived issues and applications of derivatives, exploring the individuals and institutions involved in their usage, assessing the impacts of derivatives, and providing examples of their safe application.

To shed light on the real-world implications, Grima and Thalassinos present case studies of financial firms such as Barings Bank PLC, Allied Irish Bank, and Société Générale, as well as non-financial entities like Metallgesellschaft AG and Enron. Through these detailed analyses, they unravel the underlying causes of firm failures and significant losses, raising the question of whether it is the misuse of financial derivatives rather than the derivatives themselves that leads to such outcomes.

This book serves as a vital resource for students and researchers in finance, as well as practitioners engaged in trading, regulation, or auditing. It provides a comprehensive exploration of a controversial and relevant concept, offering insights and perspectives that are essential for understanding the dynamics of financial markets.

Weight: 486g
Dimension: 228 x 145 x 20 (mm)
ISBN-13: 9781789732467