For graduate courses in business, economics, financial mathematics, and financial engineering; for advanced undergraduate courses with students who have good quantitative skills; and for practitioners involved in derivatives markets

Practitioners refer to it as “the bible;” in the university and college marketplace it’s the best seller; and now it’s been revised and updated to cover the industry’s hottest topics and the most up-to-date material on new regulations. Options, Futures, and Other Derivatives by John C. Hull bridges the gap between theory and practice by providing a current look at the industry, a careful balance of mathematical sophistication, and an outstanding ancillary package that makes it accessible to a wide audience. Through its coverage of important topics such as the securitization and the credit crisis, the overnight indexed swap, the Black-Scholes-Merton formulas, and the way commodity prices are modeled and commodity derivatives valued, it helps students and practitioners alike keep up with the fast pace of change in today’s derivatives markets.

This program provides a better teaching and learning experience—for you and your students. Here’s how:

• NEW! Available with a new version of DerivaGem software—including two Excel applications, the Options Calculator and the Applications Builder
• Bridges the gap between theory and practice—a best-selling college text, and considered “the bible” by practitioners, it provides the latest information in the industry
• Provides the right balance of mathematical sophistication—careful attention to mathematics and notation
• Offers outstanding ancillaries toround out the high quality of the teaching and learning package

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. Securitization and the Credit Crisis of 2007

9. OIS Discounting, Credit Issues, and Funding Costs

10. Mechanics of Options Markets

11. Properties of Stock Options

12. Trading Strategies Involving Options

13. Binomial Trees

14. Wiener Processes and Ito’s Lemma

15. The Black-Scholes-Merton Model

16. Employee Stock Options

17. Options on Stock Indices and Currencies

18. Options on Futures

19. Greek Letters

20. Volatility Smiles

21. Basic Numerical Procedures

22. Value at Risk

23. Estimating Volatilities and Correlations for Risk Management

24. Credit Risk

25. Credit Derivatives

26. Exotic Options

27. More on Models and Numerical Procedures

28. Martingales and Measures

29. Interest Rate Derivatives: The Standard Market Models

30. Convexity, Timing and Quanto Adjustments

31. Interest Rate Derivatives: Models of the Short Rate

32. HJM, LMM, and Multiple Zero Curves

33. Swaps Revisited

34. Energy and Commodity Derivatives

35. Real Options

36. 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