Risk Management and
Financial Institutions, Third Edition
The following typos
and other errors are in the first printing of the book. We have tried to
correct them in subsequent printings and so they may not be present in the copy
you have.
Page 93: Line 2 of Section 5.4: Change “derivatives”
to “options”
Page 102: Line 1: Change “at $20 and selling them for
$15” to “at $15 and selling them for $20”
Page
139: five
lines from end: “1.3 million euros for 1 million dollars” should be “1 million
euros for 1.3 million dollars” (This was kindly pointed out by Hendrik Hoffman)
Page
169: On
second line of dollar convexity section replace “portfolio” by “bond” (This was
kindly pointed out by Alex Saldarriaga)
Page
200: first
equation: Insert “]” before “+” (This was kindly pointed out by Salman Arif.)
Page
304: last
line “August 10, 2008” should be “August 10, 2006”. (This was kindly pointed
out by Osman Nal)
Page 312: Line 10: “1.94” should be “1.98”
Page 319: Line 1 “$348,500” should be “$337,900” and
Line 3 “$707,700” should be “$774,800” (This was kindly pointed out by Hendrik
Hoffman)
Page 352: Line 2: “47.8%” should be
“50.8%” (This was kindly pointed out by Hendrik Hoffman)
Page 359: 7-9 lines from end:
material in parenthesis should be “Bond prices above par tend to give rise to a
negative basis; bond prices below par tend to give rise to a positive basis”
(This was kindly pointed out by Tao Lin)
Page 390: f * should be f0*
in equation 17.7 and the equation above it. (This was kindly pointed out by Hendrik
Hoffman)
Page 436: In the equation six lines
from the end the last term should be 
. (The exponent a is missing.) This was kindly pointed out by
Edward Lam.
Page 492: line 5: “99.98%” should be
“99.8%” (This was kindly pointed out by Edward Yang.)
Page 572: In the answer to Problem
8.11 change “-36 and -293” to “-5.64 and 225.63” (This was kindly pointed out
by Konstantinos Liakos).
Page 580: The answer to problem 12.17 should be
200×0.7×(0.0914−0.01) or $11,396 million. (This
was kindly pointed out by Surendranath Jory)
Page 584: Problem 16.5: line 3: change 0.060 to 0.0060. (This was kindly pointed out by Hendrik Hoffman)