INTEREST RATE FUTURES AND OPTIONS
1925 Clybourn North
Chicago, IL 60614
312 868-1100, 800 776-2871
Authors: Mark Pitts and Frank J. Fabozzi
452 pages, $65, published 1990
How important are interest rates? To the consumer paying the mortgage or automobile loan, interest rates
determine what sort of house or automobile can be bought. To a businessperson, interest rates are crucial
in determining the health of the company. Newspapers, journals and specialty periodicals routinely
feature horror stories of how once-thriving companies, choked by debt incurred as a result of high interest
payments, have been forced to sell their assets or declare bankruptcy.
Given the stakes, financial managers seek opportunities to limit interest rate risk and control the costs
associated with it. Since the 1980s, there has been an explosion of financial tools designed for just this
purpose. In the title of the book, Interest Rate Futures and Options, authors Mark Pitts and Frank
Fabozzi point to two solutions to the problem.