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 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 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 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 482: line 5: “99.98%” should be “99.8%” (This was kindly pointed out by Edward Yang.)

Page 582: Problem 15.4: “56+1.5Dx” should be “56×1.5Dx” (This was kindly pointed out by Yiqin Wang)

Page 584: Problem 16.5: line 3: “0.060” should be “0.0060”.