Customer Reviews

Exotic Options: A Guide to the Second Generation Options

5 star:		(0)
4 star:		(2)
3 star:		(0)
2 star:		(0)
1 star:		(0)

 

 

I have just gradueted in Economic and Bussiness two months ago. The topic of my degree thesis was the barriers options, so I bought this Peter Zhang book. I think that it is a quite good book: easy to read, clear for its explanations but I found some mistakes in mathematical formulas. Here is the list: formula 10.25 page 212; formula 10.26b; formula 10.37 page 222; the example in page 232-233 is wrong because when the up-and-out call is valued the square symbol over the parameter v is missing; in page 236 the rebate growth rate is eta instead of gamma; formula 10.49b page 236; in formula 11.2 page 259 the correct parameter is gamma isnstead of f; in formula 11.27 page 277 UCDP is missing; formula 11.30 page 280; formula 11.34 page 281; formula 11.51 page 294. For more details about errata I found please e-mail elenaz@tin.it.

1. Excellent book to recommend to people who want to learn more on exotic options, but... 2. Two many mistakes in numerical examples, formulas, and even theorems !!, actually damaging the quality of the book. Since this is the second edition, the reader was prepared to get a cleaner version. I suggest the author creates a Web site for all these errors. 3. All these errors, typos, etc... make this book out of reach for those who want to use the formulas but have no idea on how to correct them... 4. Many very usefull ideas for structured derivatives desks