Description

Features

For advanced undergraduate or graduate business, economics, and financial engineering courses in derivatives, options and futures, financial engineering or risk management.

• Description of derivatives disasters and what we can learn from them  - readers find this material interesting and entertaining. This is a great chapter to use at the end of a course.
• Example: Chapter 32

• Coverage of credit risk and credit derivatives: informs readers about the credit derivatives market, which is growing fast and becoming very important. Competing texts do not have chapters on these topics.
• Example: Chapters 20 and 21

• Material on weather, energy, and insurance derivatives: includes expanded coverage of these non-traditional derivatives markets.
• Example: Chapter 23

• Discussion of volatility smiles: a very important aspect of how option pricing models are used in practice. This is not covered by competitors.
• Example Chapter 16

- - - - - - - - -

OTHER POINTS OF DISTINCTION

"Do you want a book that provides an option of going into significant depth on select topics?"

• Excellent treatment of binomial trees and the principle of risk-neutral valuation (Ch 11): the chapter has been extended so that there is a more complete coverage of binomial trees at one place relatively early in the book.

• Coverage of interest rate derivatives (Ch 25-30)–Presentation improved in this edition: offers the most complete coverage of interest rate derivatives.

• Value at Risk (Ch 18) and Estimating Volatilities and Correlations for Risk Management (Ch 19): ethods for updating volatility/correlation estimates from historical data covered more completely than in competing texts.

New To This Edition

How do you bring real world scenarios into your course?  Or would you like to?

Business Snapshots (about 60 in total, found in almost all chapters)—Carefully thought out and integrated into the main material in chapters.

• Describe real world situations and interesting issues that are highlighted to illustrate points being made throughout the text.

Completely revised chapters on credit risk and credit derivatives (Ch 20 and 21)—Reflects market developments.

• Makes these chapters in this edition more straightforward and easier to teach.

Opening six chapters have been replaced by seven chapters that cover forward, futures, and swaps in a more student-friendly way.

• The main change here is that the chapter on interest rates has been split into two chapters, one devoted to the math involving interest rates, the other to interest rate futures contracts and how they are used in hedging, which will be easier for students to grasp.

More discussion of how models can be implemented in Excel—Monte Carlo simulation in Chapter 17, GARCH models in Chapter 19, and the variance-gamma model in Chapter 24.

• Includes examples in the book and Excel spreadsheets on Web site to illustrate applications.

 A series of Technical Notes—Available on the author’s Web site to accompany the book.

• Creates a streamlined and more student friendly presentation by including less purely technical material in the book.

Separate chapter on Convexity, Timing, and Quanto adjustments.

• Affords succinct and targeted coverage of these concepts for deeper coverage students need.

 New topics

• For example, the size of derivatives markets is discussed in Chapter 1, Basel II is discussed in Chapter 20, and the variance-gamma model is covered in Chapter 24.

More in-depth coverage

• For example, convexity adjustments to Eurodollar futures in Chapter 5, copula models in Chapters 20 and 21, and executive stock options in Chapters 8 and 13.

Table of Contents

Preface.

  1. Introduction.

  2. Mechanics of Futures Markets.

  3. Hedging Strategies Using Futures.

  4. Interest Rates.

  5. Determination of Forward and Futures Prices.

  6. Interest Rate Futures.

  7. Swaps.

  8. Mechanics of Options Markets.

  9. Properties of Stock Options.

10. Trading Strategies Involving Options.

11. Binomial Trees.

12. Wiener Processes and Ito’s Lemma.

13. The Black-Scholes-Merton Model.

14. Options on Stock Indices, Currencies, and Futures.

15. Greek Letters.

16. Volatility Smiles.

17. Basic Numerical Procedures.

18. Value at Risk.

19. Estimating Volatilities and Correlations for Risk Management.

20. Credit Risk.

21. Credit Derivatives.

22. Exotic Options.

23. Insurance, Weather, and Energy Derivatives.

24. More on Models and Numerical Procedures.

25. Martingales and Measures.

26. Interest Rate Derivatives: The Standard Market Models.

27. Convexity, Timing, and Quanto Adjustments.

28. Interest Rate Derivatives: Models of the Short Rate.

29. Interest Rate Derivatives: HJM and LMM.

30. Swaps Revisited.

31. Real Options.

32. Derivatives Mishaps and What We Can Learn from Them.

Glossary of Terms.

DerivaGem Software.

Major Exchanges Trading Futures and Options.

Table for N(x) when x≤ 0.

Table for N(x) when x≥0.

Author Index.

Subject Index.

Courses

Options  (Finance)
Options and Futures  (Finance)
Derivatives  (Finance)
Futures  (Finance)

Next Edition(s)

• Options, Futures, and Other Derivatives, 8/E
  Hull
  ©2012  |  Prentice Hall  |  Cloth; 864 pp  |  Instock
  ISBN-10: 0132164949  |  ISBN-13: 9780132164948
  Suggested retail price: $233.33  Net price: $175.00  (What's this?)Brief Description  | 

  

  For undergraduate and graduate courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.
  
  Bridge the gap between theory and practice.
  
  Designed to bridge the gap between theory and practice, this introductory text on the futures and options markets is ideal for those with a limited background in mathematics.
  
  The eighth edition has been updated and improved—featuring a new chapter on securitization and the credit crisis, and increased discussion on the way commodity prices are modeled and commodity derivatives valued.
   
  
  

  More Info
  

• Options, Futures, and Other Derivatives, 8/E
  Hull
  ©2012  |  Prentice Hall  |  Cloth; 864 pp  |  Instock
  ISBN-10: 0132164949  |  ISBN-13: 9780132164948
  Suggested retail price: $233.33  Net price: $175.00  (What's this?)Brief Description  | 

  

  For undergraduate and graduate courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.
  
  Bridge the gap between theory and practice.
  
  Designed to bridge the gap between theory and practice, this introductory text on the futures and options markets is ideal for those with a limited background in mathematics.
  
  The eighth edition has been updated and improved—featuring a new chapter on securitization and the credit crisis, and increased discussion on the way commodity prices are modeled and commodity derivatives valued.
   
  
  

  More Info
  

• Options, Futures, and Other Derivatives, 8/E
  Hull
  ©2012  |  Prentice Hall  |  Cloth; 864 pp  |  Instock
  ISBN-10: 0132164949  |  ISBN-13: 9780132164948
  Suggested retail price: $233.33  Net price: $175.00  (What's this?)Brief Description  | 

  

  For undergraduate and graduate courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.
  
  Bridge the gap between theory and practice.
  
  Designed to bridge the gap between theory and practice, this introductory text on the futures and options markets is ideal for those with a limited background in mathematics.
  
  The eighth edition has been updated and improved—featuring a new chapter on securitization and the credit crisis, and increased discussion on the way commodity prices are modeled and commodity derivatives valued.
   
  
  

  More Info
  

• Options, Futures, and Other Derivatives and DerivaGem CD Package, 8/E
  Hull
  ©2012  |  Prentice Hall  |  Kit/Package/ShrinkWrap; 864 pp  |  Instock
  ISBN-10: 0132777428  |  ISBN-13: 9780132777421
  Suggested retail price: $233.33  Buy from myPearsonStoreNet price: $175.00  (What's this?)Brief Description  | 

  

  For undergraduate and graduate courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.
  
  Bridge the gap between theory and practice.
  
  Designed to bridge the gap between theory and practice, this introductory text on the futures and options markets is ideal for those with a limited background in mathematics.
  
  The eighth edition has been updated and improved–featuring a new chapter on securitization and the credit crisis, and increased discussion on the way commodity prices are modeled and commodity derivatives valued.
  

  More Info
  

• Options, Futures, and Other Derivatives and DerivaGem CD Package, 8/E
  Hull
  ©2012  |  Prentice Hall  |  Kit/Package/ShrinkWrap; 864 pp  |  Instock
  ISBN-10: 0132777428  |  ISBN-13: 9780132777421
  Suggested retail price: $233.33  Buy from myPearsonStoreNet price: $175.00  (What's this?)Brief Description  | 

  

  For undergraduate and graduate courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.
  
  Bridge the gap between theory and practice.
  
  Designed to bridge the gap between theory and practice, this introductory text on the futures and options markets is ideal for those with a limited background in mathematics.
  
  The eighth edition has been updated and improved–featuring a new chapter on securitization and the credit crisis, and increased discussion on the way commodity prices are modeled and commodity derivatives valued.
  

  More Info
  

PowerPoints, 6/E
Hull
©2006  |  Prentice Hall  |  On-line Supplement  |  Live
ISBN-10: 0131499114  |  ISBN-13: 9780131499119
This online resource is available at no cost.
More Info

Downloadable Instructor Resources

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Instructor's Manual w/ Test Bank, 6/E
HULL
©2006  |  Prentice Hall  |  Paper; 168 pp  |  Instock
ISBN-10: 0131499106  |  ISBN-13: 9780131499102
More Info

PowerPoints, 6/E
Hull
©2006  |  Prentice Hall  |  On-line Supplement  |  Live
ISBN-10: 0131499114  |  ISBN-13: 9780131499119
This online resource is available at no cost.
More Info

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PowerPoints, 6/E
Hull
©2006  |  Prentice Hall  |  On-line Supplement  |  Live
ISBN-10: 0131499114  |  ISBN-13: 9780131499119
This online resource is available at no cost.
More Info

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Student Solutions Manual, 6/E
Hull
©2006  |  Prentice Hall  |  Paper; 227 pp  |  Instock
ISBN-10: 0131499068  |  ISBN-13: 9780131499065
Suggested retail price:  $46.67    Buy from myPearsonStoreNet price: $35.00  (What's this?)More Info

FinCoach 2.0: CD-ROM Edition
Handa
©2002  |  Prentice Hall  |  CD-ROM Only  |  Instock
ISBN-10: 0130606189  |  ISBN-13: 9780130606181
Suggested retail price:  $60.00    Buy from myPearsonStoreNet price: $45.00  (What's this?)More Info

Research Navigator: Resources for College Research
Pearson
©2006  |  Prentice Hall  |  Paper  |  Instock
ISBN-10: 0321186079  |  ISBN-13: 9780321186072
Suggested retail price:  $40.60    Buy from myPearsonStoreNet price: $40.60  (What's this?)More Info

Back to top

PowerPoints, 6/E
Hull
©2006  |  Prentice Hall  |  On-line Supplement  |  Live
ISBN-10: 0131499114  |  ISBN-13: 9780131499119
This online resource is available at no cost.
More Info

Back to top

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