Futures, Options, and Swaps (Hardcover)

by Robert W. Kolb (Author)
Key Phrases: quanto note, plain vanilla currency swap, bear floater, New York, United States, Dow Jones (more...)

Editorial Reviews

Review
“This is a revision of an already excellent textbook that has a very clear way of explaining the often difficult concepts that the student needs to understand in this very technical subject area. What I particularly like is the careful way the text builds up the material in a simple style without skipping any steps. This incremental approach makes it a very useful teaching resource. The book clearly knows what it is trying to do and makes no assumption about the knowledge level of the reader. I also like the way material is presented through the use of concrete examples.”
Peter Moles, University of Edinburgh<!--end--> --This text refers to the Hardcover edition.

Product Description
Written in a clear, conversational style, this fourth edition of the classic Futures, Options, and Swaps provides the most comprehensive coverage of derivatives currently available. This book is renowned for providing an excellent balance between introductory and advanced topics. This new edition includes many new applications exercises at the end of each chapter. An enhanced and updated version of OPTION! - the IBM PC-compatible program that can compute virtually every option and swap value discussed in this book - is included with the text. The software is also downloadable from the Futures, Options, and Swaps website, http: //www .blackwellpublishing.com/kolb. The fourth edition has been extensively updated and reflects the evolution away from the 'Chicago'-style markets that has happened in recent years. Chapters on futures markets, interest rate futures, and stock index futures have also been significantly revised.

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Product Details

• Hardcover: 804 pages
• Publisher: Blackwell Publishers; 3rd Bk&Dk edition (August 15, 1999)
• Language: English
• ISBN-10: 0631214992
• ISBN-13: 978-0631214991
• Product Dimensions: 9.2 x 7.7 x 1.8 inches
• Shipping Weight: 3.4 pounds
• Average Customer Review: 3.9 out of 5 stars See all reviews (10 customer reviews)
• Amazon.com Sales Rank: #1,107,152 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

26 of 28 people found the following review helpful:

5.0 out of 5 stars Clear interesting read for both the layman and expert., July 3, 1999

By	jvdi "jvdi" (Fort Lauderdale, FL United States) - See all my reviews

This review is from: Futures, Options, and Swaps (Hardcover)

This is the only non-AIMR text that is required reading for all three CFA exams. I feel the Dr. Kolb's strength is laying out the basic tenents of finance for the layman. He also includes advanced formulas in the latter part of the book if you want to get deeper.Certain other authors of finance and accounting texts seem more interested in impressing their readers with their acumen in the field. In this book you don't have to read a paragraph 3 times to get the basic gist of what he is trying to say. It is very plain and straightforward. If only more academics would write in this manner. My main problem with this book is I found it so interesting I wandered off the required reading sections for the CFA test too much.

14 of 15 people found the following review helpful:

4.0 out of 5 stars Much better than many realize, September 19, 2005

By	Bachelier "Husband, Father, Catholic, Finance... (Ile de France) - See all my reviews

This review is from: Futures, Options, and Swaps (Hardcover)

Let's face it: the big Kahuna in this space is Hull's 6th Edition of "Options, Futures, and Other Derivatives" (I actually prefer the 5th Edition), which is frequently referred to as "The Bible" by financial quants. Paul Wilmott's two volume "Quantitative Finance" also has a solid following, in addition to growing appreciation for Mark Joshi's "The Concepts and Practice of Mathematical Finance." Robert Kolb's "Futures, Options, and Swaps" therefore is often confined to an "also-ran" and treated as unserious because of its inclusion in the CFA curriculum. This is unfair, and for most undergraduate and MBA students who are not destined for derivatives dealing desks, and even many who are, Kolb is the better volume.

Critics of Hull frequently cite that he is dry and technical to the point of somnolence. For Wilmott the opposite is the case. Critics hold his tone is flippant and that he glosses over major dimensions. My own view is these harsh reactions to these fine authors are exaggerations, but do have some evidence to support their expression. This, as a professor, leads me to the conclusion that for many students the author's tone is a major factor in their successful engagement with a fundamental teaching text.

This leads me to Kolb's excellent works. Many undergraduate and some MBA students of derivatives use "Hull lite" ("Fundamentals of Futures and Options Markets"), but I encourage the wider adoption and use of Kolb's "Futures, Options, and Swaps." Kolb is superior to Hull for tone, accessibility, lucidity, and utility. Where Hull reaches for a completist coverage of obscure pricing models, Kolb's coverage is instead complete in a practical sense, while not abandoning treatment of less well-known options and their pricing models. Kolb's clarity is commendable, and never dry. Kolb does not gloss over or ignore difficult topics, and his style is never pedantic or superficial.

This text does, however, contain any number of horrible errors and editing snafus that frustrate the reader. The errata sheet from the publisher does little to ameliorate the pain from these howlers. One wonders how a book can contain so many errors in such a competitive field. But it is fairly easily explained: because of Kolb's adoption by the CFA curriculum, there is a floor of near guaranteed sales that creates a non-competitive economic rent.

I particularly recommend Kolb over Hull and Wilmott for those students whose background is not mathematics, engineering, or hard sciences. While the book is technical, it is not written in near-code geek speak. For my MBA students who are "poets" rather than "rocket scientists" Kolb wins as hands down favorite. Hull remains excellent for experts, PhD students, technicians, and pricing specialists, however, Kolb certainly deserves wider respect and use by the majority of students of derivatives. In short, while flawed, Kolb is an excellent and accessible work. I recommend the wide adoption of Kolb's "Futures, Options, and Swaps," and in fact, all his other works, for most students of finance.

14 of 15 people found the following review helpful:

5.0 out of 5 stars Comprehensive book on Derivatives, April 12, 2000

By	Franco Arda (Hong Kong) - See all my reviews (REAL NAME)

Got many books on derivatives, but Kolb's is my favourite one. He covers the topic in a slightly less quantitative way than Hull does and goes straight to all the different derivatives while avoiding any further explanations like Ito's Lemma etc. I especially liked the part on swaps with many examples like flavoured swaps or equity swaps. Nevertheless, if you're looking for a good software, than I would recommend The Complete Guide to Option Pricing Formulas (build on Excel VBA).