Dictionary of Financial Engineering

A practical guide to the inside language of the world of derivativeinstruments and risk management Financial engineering is where technology and quantitative analysismeet on Wall Street to solve risk problems and find investmentopportunities. It evolved out of options pricing, and, at thistime, is primarily focused on derivatives since they are the mostdifficult instruments to price and are also the riskiest. Not onlyis financial engineering a relatively new field, but by its nature, it continues to grow and develop. This unique dictionary explainsand clarifies for financial professionals the important terms, concepts, and sometimes arcane language of this increasinglyinfluential world of high finance and potentially highprofits. John F. Marshall (New York, NY) is a Managing Partner of Marshall, Tucker & Associates, a New York-based financial engineering andconsulting firm. Former Executive Director of then InternationalAssociation of Financial Engineers, Marshall is the author ofseveral books, including Understanding Swaps.