ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book examines the ways in which conclusions on mergers are influenced by the data used to study them. It focuses on testing alternative hypotheses that relate the adoption of anti-takeover defenses to the financial characteristics of firms that adopt them. The book presents subjects of topical significance: initial public offerings, program trading and valuation. It analyzes the impact of program trading on the Standard & Poor’s cash and future returns volatility. The book explores the exotic fields of finance – options, futures and forward markets. It also analyzes the risk-neutral valuation relationships for contingent claims. It highlights the flexibility of traditional sensitivities and higher sensitivities characteristic of the flexible Asian options and compares them with standard Asian options and plain vanilla options.
