AFM — Advance Financial Management technical articles.

Considers how a traditional project can be reassessed using option valuation and how it assists when evaluating a portfolio of inter-dependent projects.

Covers real options calculations through three worked examples, then considers limitations of applying real options in practice and how they can be mitigated.

Explains the significance of the information given in interest rate risk management questions and demonstrates exactly what is required to score marks.

Examines basis risk — which arises when the price of a futures contract does not have a predictable relationship with the spot price of the instrument being hedged.

Covers foreign exchange futures and options using real market data, focusing on key areas of significant importance for AFM exam candidates.

Explains currency swaps — agreements in which two parties exchange principal and interest in one currency for principal and interest in another.

Demonstrates how to tackle a business valuation question in AFM — covering assets-based, income-based, and cash flow-based approaches with practical application.

Explains reverse takeovers — now examinable in AFM — including the mechanics, potential benefits, and drawbacks associated with this form of acquisition.

Provides a general overview of the different aspects, issues, and developments of Islamic finance — extending the explanations given in the sukuk bonds article.

Covers Islamic finance as a growing source of finance — including the theory, practical use, and the success and failure of sukuk bonds in real markets.

Explores how behavioural factors influence financial decision making and, consequently, how stock markets and companies' financial strategies may behave unpredictably.

Covers securitisation — a topical issue since the credit crunch and still a relevant area for AFM students on structured finance and financial instruments.