Designed specifically for managers, this groundbreaking book emphasizes how to use derivatives to maximize firm value through risk management - instead of just using derivatives to speculate. It presents the crucial tools necessary for executives and derivatives players to effectively hedge with derivatives in order to protect firms from losses. Coverage includes all the pricing tools needed to use derivatives seriously, as well as the tools to evaluate how to use a particular derivative to reduce risk. Risk Management and Derivatives takes a general approach to derivatives, illustrating how to use existing derivatives for risk management - as well as derivatives that do not yet exist.