The seventh edition of Options, Futures And Other Derivatives (With CD) is packed with revised and updated information on the derivatives market. The book offers a crisp introduction to options markets and futures.
Since the study of derivatives requires plenty of mathematics and because all the readers might not have a solid mathematical background, the authors have tried to strike a balance between essential and non-essential mathematics and present many numerical problems for better and thorough understanding.
The book is tailored for beginners and no prior knowledge of options markets and futures is required.
The seventh edition of the book is new and improved and contains a variety of newly introduced topics. For instance, it discusses a lot of issues pertaining to the Indian market. Other topics covered include credit derivatives, swaps, Greek letters, binomial trees, volatility smiles, and interest rate futures.
The CD that comes with this edition is an added bonus and lets the users create useful applications in a few simple steps.
The numerical examples and practice questions help in easily understanding the concepts that have been explained. The minimal text in the book offers extensive knowledge and information in the form of theory. The book also features real life accounts and sound logical reasoning.
Options, Futures And Other Derivatives (With CD) was published in 2009 by Pearson.
About The Authors An Associate Editor for various academic journals, John C. Hull is the Financial Chair in Derivatives and Risk Management at Joseph L. Rotman School of Management.
Other books by John C. Hull include Fundamentals of Futures and Options Markets, Risk Management and Financial Institutions, and Introduction to Futures and Options Markets.
Sankarshan Basu is a Professor at the Indian Institute of Management in Bangalore and teaches Finance and Control. Options, Futures and Derivatives is Sankarshan Basu’s only book to date. Basu has worked on several articles for various journals including Management Dynamics and Journal of Insurance and Risk Management.
Table of Contents * Introduction * Mechanics of futures markets * Hedging strategies using futures * Interest rates * Determination of forward and futures prices * Interest rate futures * Swaps * Mechanics of options markets * Properties of stock options * Trading strategies involving options * Binomial trees * Wiener processes and Itô’s lemma * The Black–Scholes–Merton model * Derivatives markets in developing countries * Options on stock indices and currencies * Futures options * The Greek letters * Volatility smiles * Basic numerical procedures * Value at risk * Estimating volatilities and correlations * Credit risk * Credit derivatives * Exotic options * Weather, energy, and insurance derivatives * More on models and numerical procedures * Martingales and measures * Interest rate derivatives: the standard market models * Convexity, timing, and quanto adjustments * Interest rate derivatives: models of the short rate * Interest rate derivatives: HJM and LMM * Swaps revisited * Real options * Derivatives mishaps and what we can learn from them
