John Hull - Options, Futures, and Other Derivatives, Global Edition-Pearson (2021)(Z-Lib.io)

Chapter 1: Introduction
- Derivatives are essential in finance, used for hedging, speculation, and arbitrage.
- Importance of understanding derivatives for anyone in finance.
Chapter 2: Futures Markets and Central Counterparties
- Explanation of how futures contracts function; importance of margin accounts and clearing houses.
- Role of margin calls and daily settlements in the futures market.
Chapter 3: Hedging Strategies Using Futures
- Methods and purposes for hedging; distinction between short and long hedges.
- Importance of basis risk and the impact of daily settlements on futures contracts.
Chapter 4: Interest Rates
- Discussion on various types of interest rates and their implications in derivative trading.
- Understanding of zero rates, yield curves, and forward rates.

Futures Contract: A standardized contract traded on exchanges to buy or sell an asset at a future date.
Forward Contract: A non-standardized contract traded OTC (over-the-counter).
Hedging: A strategy to offset potential losses in investments by taking an opposite position in a related asset.
Treasury Rates: Rates on government securities often regarded as risk-free for investors.
Credit Spread: The difference in yield between a risk-free rate (like a Treasury rate) and a riskier asset.
Basis Risk: The risk that the hedge will not perfectly offset the price movements of the underlying asset.

Transition away from LIBOR due to its manipulation issues, introduction of new reference rates like SOFR and SONIA.
Inclusion of machine learning applications in derivatives pricing and hedging strategies.
Discussion of changes in the regulatory environment, including Basel IV effects.

Use of DerivaGem software for portfolio management and risk management analysis.
The role of derivatives in risk management for nonfinancial corporations and financial institutions.

Understanding Derivatives: Crucial for finance professionals due to their pervasive application across sectors.
Hedging and Speculation: Importance of building hedging strategies that minimize risk while catering to specific corporate financial needs.
Market Dynamics: The interaction between various participants in the derivatives market impacts pricing and risk assessment.