Options, Futures, and Other Derivatives with Derivagem CD (7th Edition) [Hardcover]

John C. Hull (Author)

Book Description

ISBN-10: 0136015867 | ISBN-13: 978-0136015864 | Publication Date: May 18, 2008 | Edition: 7

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.

Product Details

• Hardcover: 848 pages
• Publisher: Prentice Hall; 7 edition (May 18, 2008)
• Language: English
• ISBN-10: 0136015867
• ISBN-13: 978-0136015864
• Product Dimensions: 10.1 x 8 x 1.6 inches
• Shipping Weight: 3.6 pounds
• Average Customer Review: 4.4 out of 5 stars  See all reviews (13 customer reviews)
• Amazon Best Sellers Rank: #12,514 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

17 of 17 people found the following review helpful:

5.0 out of 5 stars The gold standard (although you may not need to upgrade to the seventh edition), November 5, 2008

By 

David R. Harper (Los Angeles, CA USA) - See all my reviews
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This review is from: Options, Futures, and Other Derivatives with Derivagem CD (7th Edition) (Hardcover)

This is the definitive introduction to derivatives. As evidence of its relevance, the following chapters are assigned to Financial Risk Manager (FRM) candidates: Hedging Strategies using Futures (Chapter 3), Determination of Forward and Futures Prices (5), Interest Rate Futures (6), Swaps (7), Properties of Stock Options (9), Trading Strategies Involving Options (10), Binomial Trees (11), Black-Scholes-Merton Model (13), Greeks (15), Volatility Smiles (16), Exotic Options (22).

Given that this is an expensive text, the most frequent question I get is, do I need to buy the latest edition? Perhaps you do not: the updates from fifth to sixth edition, and from sixth to seventh edition, have both been modest "version" upgrades. Here is a rule-of-thumb: the more introductory the topic (i.e., the earlier the chapter), the less likely you want/need the upgrade. The early chapters on futures, hedging, interest rate futures, swaps, and option pricing have barely changed since the fifth edition. Further, from what i can tell, the end-of-chapter questions are largely the same/similar.

In regard to the seventh, in addition to a number of refinements (e.g., some reorganization), the two noticeable differences are: a new chapter on valuation of employee stock option (a particular expertise of Hull's) and more material on certain credit derivatives (CDOs, credit default swap) including a bit more help on Gaussian copula. However, in regard to credit derivatives, in total, Hull gives a quick tour which may be challenging to the new learner. It is maybe not the best place to start for credit derivatives per se.

But, this is the gold standard, a work of art, as far as finance texts go. It may be an introduction but it offers encyclopedic breadth. I've read it several times over, worked most of the problems, taught from it, argued with it, and yet I keep needing to refer to it--Hull is the trusted adviser you call in a crunch, because you know he knows--full mastery is probably still years away.

4 of 4 people found the following review helpful:

5.0 out of 5 stars classical book, September 15, 2008

By 

F. N. Tavares "Noris" (Rio de Janeiro, Brazil) - See all my reviews
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Amazon Verified Purchase

This review is from: Options, Futures, and Other Derivatives with Derivagem CD (7th Edition) (Hardcover)

I was planning to buy this book for a few years.
This is a classical book on Derivatives. A must have for anyone that is interested in learning how derivatives work and how to price them.
It provides good reasoning and intuitive ideas on risk-neutral pricing. I tried learning that from other books before but the main ideas are so well explained here that now I can understand what those other books say (concepts like market price of risk and the equivalent martingale result for change of numeraire). Interest rate derivatives are well introduced here and the new chapter on more numerical procedures extends the results from previous chapters to dynamics with stochastic volatility and so on.
So, this is a must have and basic reading book for any quant analyst.

15 of 22 people found the following review helpful:

1.0 out of 5 stars No solutions to chapter problems, September 1, 2008

By 

K.C. (Richmond, VA United States) - See all my reviews

This review is from: Options, Futures, and Other Derivatives with Derivagem CD (7th Edition) (Hardcover)

For a book this expensive, you would think there would be solutions to the chapter problems but, beware, there are NOT. You must shell out another $40 to get the solutions manual. The chapters are well-written but how about the poor students?