Business, finance, economics and mathematics departments offer undergraduate and graduate courses in options and futures, financial engineering, and risk management. There is a common respect and focus of theory and practice in this fifth edition text. It gives a unified approach to the valuation of derivatives. The popular course text is considered the bible by practitioners. There are seven new chapters in the fifth edition.

FROM THE BACK COVER

There is a man named John C. Hull. It’s not like it’s like it’s like it’s like it’s like it’s like it’s like it’s like it’s like it’s like it’s like it’s like it’s like it’s like it There are options, futures, and other derivatives. It is a best-selling college textbook and the bible in trading rooms throughout the world.

THE FIFTH EDITION CONTINUES TO OFFER THE MOST CURRENT TOPICS IN THE FIELD WITH THE ADDITION OF SEVEN NEW CHAPTERS:

• CHAPTER 4—”Hedging Strategies Using Futures,” a new chapter on the use of futures for hedging.
• CHAPTER 20—”More on Models and Numerical Procedures.”
• CHAPTER 25—”Swaps Revisited,” gives the reader insight into the range of nonstandard swap products.
• CHAPTER 27—”Credit Derivatives,” explains how these products work and how they should be valued.
• CHAPTER 28—”Real Options,” provides realistic examples showing how the real options approach can be used in capital investment appraisal.
• CHAPTER 29—”Insurance, heather, and Energy Derivatives,” explains non-traditional derivatives and their role in risk management.
• CHAPTER 30—”Derivatives, Mishaps, and What We Can Learn From Them.”

Every copy of the text comes with a new version of DerivaGem Software. A new module is included. There are updates to the software that can be downloaded. John Hull is an Options, Futures, and Other Derivative Securitiesall.com. .

EXCERPT. © REPRINTED BY PERMISSION. ALL RIGHTS RESERVED.

It’s hard for me to believe that the first edition of this book was only 330 pages. Over the last 15 years there have been many developments in derivatives markets and the book has grown to keep up with them. There are seven new chapters in the fifth edition.

The book serves many markets. It is appropriate for graduate courses in economics. When students have good quantitative skills, it can be used on advanced undergraduate courses. Many practitioners who want to acquire a working knowledge of how derivatives can be analyzed find the book useful.

The use of mathematics is one of the key decisions that must be made by an author who is writing in the area of derivatives. The material is likely to be hard to access for many students and practitioners if the level of mathematical sophistication is too high. Some important issues will be treated in a superficial way if it is too low. I’ve tried to be careful with the way I use mathematics in the book. The end-of-chapter appendices have either eliminated or included non essential mathematical material. Many numerical examples have been included in the explanations of concepts that are likely to be new to many readers.

Risk management and derivatives markets are covered in the book. The reader needs to have taken an introductory course in finance and a course in probability and statistics. No prior knowledge of options, futures contracts, swaps, and so on is assumed. It is not necessary for students to take an investment course before taking a course based on this book. The book can be used in many different ways in the classroom. Instructors may want to spend most of their time on the first half of the book. Many different combinations of the chapters in the second half of the book can be used in an advanced course. At the end of an introductory or advanced course, the material in Chapters 29 and 30 works well. What is new?

MATERIAL HAS BEEN UPDATED AND IMPROVED THROUGHOUT THE BOOK. THE CHANGES IN THIS EDITION INCLUDE:

There is a new chapter on futures for hedging. Part of the material was in Chapters 2 and 3. The change allows hedging to be covered in more depth and the first three chapters are less intense. There is a new chapter on models and numerical procedures. Some of the new material has been transferred from the chapter on exotic options in the fourth edition. Chapter 25 is a new chapter on swaps. This gives the reader an appreciation of the range of swap products that are traded in the over-the-counter market and discusses how they can be valued. There is a chapter on credit risk. Chapter 26 talks about credit risk and credit value at risk while Chapter 27 talks about credit derivatives. There is a new chapter on real options. Chapter 29 deals with insurance, weather, and energy derivatives. John Hull is a derivatives broker. There is a new chapter on derivatives accidents and what we can learn from them. The material flows better after the chapter on martingales and measures has been improved. There is a better balance between the model-building approach and the historical simulation approach in the chapter on value at risk. The chapter on volatility smiles has been improved. Chapter 15. The coverage of the market model has been expanded. There are at least one or two changes to the notation. The strike price is now referred to as K rather than X. There are many new end-of-chapter problems added.

SOFTWARE

This book has a new version of DerivaGem. The options calculator and applications builder are part of this. There are minor improvements to the Options Calculator in the previous release. Users can use the Applications Builder to build their own applications. Students can explore the properties of options and numerical procedures with a number of sample applications. It allows more interesting assignments to be designed.

At the end of the book, the software is described more fully. There are updates to the software on my website: rotman.utoronto.ca/hull.

There are hundreds of PowerPoint slides on my website. Instructors can adapt the slides to meet their own needs if they adopt the text. There are answers to questions.

The end-of-chapter problems are divided into two groups: Questions and Problems and Assignment Questions. The options, futures, and other derivatives: solutions manual can be purchased by students. The instructors manual has solutions to assignment questions.

Get John Hull – Options, Futures, and Other Derivative Securities on nextskillup.com

Options, futures, and other derivatives are available for download.