PT_NYC
Posted August 10, 2011
There was one review that gave two stars to that book with the following reasoning: "Beware, you'll need to spend another $40 (collective sigh in horror) for Answers Manual"... I find it a bit strange - average reader of such a book will be earning more than $100K/year for most of the career. So he should beware of ... $40 for another piece of invaluable learning material? We need a balance check here :)
1 out of 1 people found this review helpful.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.Anonymous
Posted August 14, 2012
Twice we tried to order 2 copies of this Pearson textbook from B&N. Both sets (all 4 copies) were damaged, including broken spines. Don't order this item from B&N unless you also have the time & money to have copies re-bound.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.Anonymous
Posted September 2, 2008
This book is well written but BEWARE - to get answers to the end of chapter questions, you need to fork out another $40+ to get the Solutions Manual.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.Anonymous
Posted December 10, 2000
Book, which will show you basics of derivative securities. You will aslo find many materials on John C. Hull's web-page. Good examples, proofs and exercises - but you also have to buy 'Solutions Manual to...'.
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Posted July 23, 2010
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Posted June 23, 2011
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Posted April 30, 2010
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Posted March 8, 2011
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More About This Textbook
Overview
Updated and revised to reflect the most current information, this introduction to futures and options markets is ideal for those with a limited background in mathematics.
Based on Hull's Options, Futures and Other Derivatives, one of the best-selling books on Wall Street, this book presents an accessible overview of the topic without the use of calculus. Packed with numerical samples and accounts of real-life situations, the Fifth Edition effectively guides readers through the material while providing them with a host of tangible examples.
For professionals with a career in futures and options markets, financial engineering and/or risk management.
Editorial Reviews
Booknews
A graduate level business text providing a working knowledge of how derivatives can be analyzed. Hull (U. of Toronto) keeps non-essential mathematics at a minimum while still rigorously introducing the key components of futures markets and the use of futures for hedging, interest rate futures, swaps, options markets, trading strategies, binomial trees, the Black-Scholes analysis, numerical procedures, models of the yield curve, and credit risk and regulatory capital. The conclusion, thankfully, reviews the key concepts and additional equations are presented at the end of the discussions. The text assumes the student has had introductory courses in finance, probability and statistics. Annotation c. by Book News, Inc., Portland, Or.Booknews
This fourth edition provides a unifying approach to the valuation of all derivatives<-->not just futures and options<-->and includes new chapters on value at risk and estimating volatilities and correlations. Hull (Joseph L. Rotman School of Management, U. of Toronto) assumes that the reader has taken introductory courses in finance and probability and statistics. The disk includes Excel-based software called DerivaGem which can be used to calculate options prices, imply volatilities, and calculate Greek letters for options and interest rate derivatives. For graduate and advanced undergraduate elective courses in business, economics, and financial engineering. Annotation c. Book News, Inc., Portland, OR (booknews.com)Product Details
Related Subjects
Read an Excerpt
Preface
This book is appropriate for graduate and advanced undergraduate elective courses in business, economics, and financial engineering. It is also suitable for practitioners who want to acquire a working knowledge of how derivatives can be analyzed.
One of the key decisions that must be made by an author who is writing in the area of derivatives concerns the use of mathematics. If the level of mathematical sophistication is too high, the material is likely to be inaccessible to many students and practitioners. If it is too low, some important issues will inevitably be treated in a rather superficial way. In this book, great care has been taken in the use of mathematics. Nonessential mathematical material has been either eliminated or included in end-of-chapter appendices. Concepts that are likely to be new to many readers have been explained carefully, and many numerical examples have been included.
This book provides a unifying approach to the valuation of all derivatives - not just futures and options. The book assumes that the reader has taken an introductory course in finance and an introductory course in probability and statistics. No prior knowledge of options, futures contracts, swaps, and so on is assumed. It is not therefore necessary for students to take an elective course in investments prior to taking a course based on this book.
Changes in This Edition
This edition contains more material than the third edition. The material in the third edition has been updated and its presentation has been improved in a number of places. The major changes include:
1. A new chapter (chapter 14) has beenincluded on value at risk.
2. A new chapter (chapter 15) has been included on estimating volatilities and correlations. GARCH models are covered in much more detail than in the third edition.
3. Chapter 19 contains much new material and explains the role played by martingales and measures in the valuation of derivatives.
4. Chapter 20 on the standard market models for valuing interest rate derivatives has been revised. It now uses the material in chapter 19 to provide a more complete discussion of the models for valuing bond options, caps, and swap options.
5. There are now two chapters on equilibrium and no-arbitrage models of the term structure (chapters 21 and 22). Chapter 21 covers equilibrium models and one-factor no-arbitrage models of the short rate. Chapter 22 covers two-factor models of the short rate, the HIM model, and the LIBOR market (BGM) model.
6. Chapter 4 on Interest Rates and Duration has been rewritten to make the material clearer and more relevant.
7. Chapter 23 on Credit Risk has been rewritten to reflect developments in this important area.
8. More material has been added on volatility smiles and volatility skews (chapter 17).
9. The sequencing of the material has been changed slightly. Volatility smiles and alternatives to Black-Scholes now appear before the chapter on exotic options, which in turn appears before the material on interest rate derivatives.
10. The notation has been improved and simplified. So and Fo are used to denote the asset price and the forward price today (that is, at time zero) and the cumbersome "T - t" no longer appears in most parts of the book.
11. A glossary of terms has been included.
12. Many new problems and questions have been added.
Software
New Excel-based software, DerivaGem, is included with the book. This software is a big improvement over the software included with previous editions. It has been carefully designed to complement the material in the text. Users can calculate options prices, imply volatilities, and calculate Greek letters for European options, American options, exotic options, and interest rate derivatives. Interest rate derivatives can be valued either using Black's model or a no-arbitrage model. The software can be used to display binomial trees (see for example Figure 16.3 and Figure 21.11) and provide many different charts showing the impact of different variables on either option prices or the Greek letters.
The software is described more fully at the end of the book. Updates to the software can be downloaded from my Web site (...
Table of Contents
Preface
Preface
This book is appropriate for graduate and advanced undergraduate elective courses in business, economics, and financial engineering. It is also suitable for practitioners who want to acquire a working knowledge of how derivatives can be analyzed.
One of the key decisions that must be made by an author who is writing in the area of derivatives concerns the use of mathematics. If the level of mathematical sophistication is too high, the material is likely to be inaccessible to many students and practitioners. If it is too low, some important issues will inevitably be treated in a rather superficial way. In this book, great care has been taken in the use of mathematics. Nonessential mathematical material has been either eliminated or included in end-of-chapter appendices. Concepts that are likely to be new to many readers have been explained carefully, and many numerical examples have been included.
This book provides a unifying approach to the valuation of all derivatives - not just futures and options. The book assumes that the reader has taken an introductory course in finance and an introductory course in probability and statistics. No prior knowledge of options, futures contracts, swaps, and so on is assumed. It is not therefore necessary for students to take an elective course in investments prior to taking a course based on this book.
Changes in This Edition
This edition contains more material than the third edition. The material in the third edition has been updated and its presentation has been improved in a number of places. The major changes include:
1. A new chapter (chapter 14) hasbeenincluded on value at risk.
2. A new chapter (chapter 15) has been included on estimating volatilities and correlations. GARCH models are covered in much more detail than in the third edition.
3. Chapter 19 contains much new material and explains the role played by martingales and measures in the valuation of derivatives.
4. Chapter 20 on the standard market models for valuing interest rate derivatives has been revised. It now uses the material in chapter 19 to provide a more complete discussion of the models for valuing bond options, caps, and swap options.
5. There are now two chapters on equilibrium and no-arbitrage models of the term structure (chapters 21 and 22). Chapter 21 covers equilibrium models and one-factor no-arbitrage models of the short rate. Chapter 22 covers two-factor models of the short rate, the HIM model, and the LIBOR market (BGM) model.
6. Chapter 4 on Interest Rates and Duration has been rewritten to make the material clearer and more relevant.
7. Chapter 23 on Credit Risk has been rewritten to reflect developments in this important area.
8. More material has been added on volatility smiles and volatility skews (chapter 17).
9. The sequencing of the material has been changed slightly. Volatility smiles and alternatives to Black-Scholes now appear before the chapter on exotic options, which in turn appears before the material on interest rate derivatives.
10. The notation has been improved and simplified. So and Fo are used to denote the asset price and the forward price today (that is, at time zero) and the cumbersome "T - t" no longer appears in most parts of the book.
11. A glossary of terms has been included.
12. Many new problems and questions have been added.
Software
New Excel-based software, DerivaGem, is included with the book. This software is a big improvement over the software included with previous editions. It has been carefully designed to complement the material in the text. Users can calculate options prices, imply volatilities, and calculate Greek letters for European options, American options, exotic options, and interest rate derivatives. Interest rate derivatives can be valued either using Black's model or a no-arbitrage model. The software can be used to display binomial trees (see for example Figure 16.3 and Figure 21.11) and provide many different charts showing the impact of different variables on either option prices or the Greek letters.
The software is described more fully at the end of the book. Updates to the software can be downloaded from my Web site (...