Introduction:
The study undertaken by us is to try and understand the conceptual framework and the techniques of FINANCIAL ENGINEERING.Financial engineering involves the design, the development, and the implementation of innovative financial instruments and processes, and the formulation of creative solutions to problems in finance.
Financial engineering is not limited to corporate and institutional applications. Many of the most creative financial innovations in recent years have been directed at the retail, sometimes called the consumer level. These include such things as adjustable rate mortgages, cash management accounts, NOW accounts, IRS and Keoghs, and various new forms of life insurance.
Financial engineers are involved in a number of important areas. These include corporate finance, trading, investment and money management, and risk management. Financial engineers must be trained in all the tools available. The tools of financial engineering can be divided into two broad categories: conceptual and physical.
Number of Pages of Project Report: 51
Package Includes: Synopsis + Project Report
Project Format: Document (.doc)
Table of Contents of Project Report:
1. Introduction
- Objective
- Methodology
2. Financial Engineering
- What it is?
- Growth of Financial Engineering
- Quantitative sophistication and management training
3. Time value of money
- Cash flows
- Time Value
- Sensitivity Analysis of Time Value
- Future Value or Terminal Value
- Applications
- Compounding
4. Exchange rates
- The Basics
- The Determinants of Exchange Rates
5. Derivatives
- Benefits of Derivatives
- Forward Contracts
- Future Contracts
6. Swaps
- Interest Rate Swaps
- Currency Swaps
- Commodity Swaps
- Equity Swaps
- Hedging Swaps
7. Options
- Basic Terminology
- American And European Option
- Value of Option
- Arbitrating With Options
- Hedging With Options
8. Bibliography
