Options, Futures and Other Derivatives

by John C. Hull

Again, John Hull has done a great job revising and updating this best-selling book. Changes in the fifth edition include:

A new chapter on credit derivatives (Chapter 21). New! Business Snapshots highlight real-world situations and relevant issues. The first six chapters have been -reorganized to better meet the needs of students and .instructors. A new release of the Excel-based software, DerivaGem, is included with each text.

A useful Solutions Manual/Study Guide, which includes the worked-out answers to the "Questions and Problems" sections of each chapter, can be purchased separately (ISBN: 0-13-144570-7).

Genres: Finance, Economics, Business, Textbooks, Nonfiction, Reference, Mathematics

816 pages, Paperback

Published January 1, 2005

About the author

John C. Hull is a Professor of Derivatives and Risk Management at the Rotman School of Management at the University of Toronto.
He is both a very well respected researcher in the academic field of quantitative finance (see for example the Hull-White model), and also the author of (among other works) two books on financial derivatives that have become market practitioners' standard texts: "Options, Futures, and Other Derivatives" and "Fundamentals of Futures and Options Markets".
In 1999, he was awarded the Financial Engineer of the Year Award, by the International Association of Financial Engineers.

Reviews

[Alex · Rating 5 out of 5]

James Bond sleeps with a gun under his pillow. I sleep with OF&OD.

[Austin · Rating 4 out of 5]

This is the second most over-rated book in all of finance*, yet it still should be on the shelf of every single person in the industry. Known universally simply as "Hull", this book is too dry, with too few details and too little mathematics, but it still pulls in the stars because of its fantastic breadth. This is also unambiguously the place for anyone beginning to learn the subject to begin. If you can work the problems at the end of each chapter in the book, you can get hired. The problem is that too many people think that is the end of the road instead of the meager, meager beginning.

* See Dynamic Hedging Managing Vanilla and Exotic Options by Nassim Nicholas Taleb for the number one spot. While Hull is more highly regarded, thus potentially giving it farther to fall, nothing can touch the steaming pile of feces that is Dr. Taleb's opus for being undeserving of the sacrifice of the shade provided by the leaves of the trees cut down, chipped, pulped, bleached and pressed for the paper that it is printed upon.

[Liberty · Rating 2 out of 5]

I have no options in the future

[Peyman Haghighattalab · Rating 4 out of 5]

شکل اولیه ی پول انواع کالا بود و جابه جایی پول مبادله ی کالا به کالا. بعدها سکه ها اختراع شدند. فلزات کمیاب پرارزشی برای مبادله ی پول. و بعدها اسکناس ها آمدند. کاغذهایی شکننده که فقط معنای پول را داشتند. پول در تاریخ بشر روز به روز معنوی تر و متافیزیکی تر شده است.
مشتقات مالی معجزه ای در باب متافیزیکی شدن پول هستند. در نگاه اول غیرقابل هضم است که روی یک دارایی و سهام که خودش شکل فیزیکی مشخصی ندارد دوباره یک دارایی شکل بگیرد که جدا از دارایی اول مبادله شود و در عین حال که به آن وابسته است از آن مستقل نیز باشد. آپشن ها احترام به شعور بشریت اند. خریدن حق اختیار خرید و خریدن حق اختیار فروش و فروختن حق اختیار خرید و فروختن حق اختیار فروش چهار دسته ی مختلف از آپشن ها هستند که در نگاه اول فقط بازی با کلمات به نظر می آیند. ولی جهانی عظیم را شکل داده اند.
کتاب آپشن ها, فیوچرها و دیگر مشتقات ملی جان هال یک کتاب پایه ی فوق العاده برای درک ساز و کارهای مشتقات مالی است. فصل های کتاب کوتاه هستند و زبان کتاب بسیار ساده. ریاضیات مباحث مالی ریاضیات سنگینی نیست. فقط تبدیل معاملات گوناگون به زبان ریاضی (مدل سازی) کمی سخت است که جان هال به خوبی از پسش بر آمده.
برای من نرم افزار همراه کتاب خیلی هیجان انگیز بود. نرم افزاری که یک فایل اکسل فرموله شده است. یک شامورتی بازی هیجان انگیز با اکسل که در ابعادی کوچک به آدم یاد می دهد که مشتقات مالی و دنیای قشنگ نوی شان بر چه پایه هایی شکل می گیرد و با چه محاسبات عظیم جالبی قیمت گذاری می شوند.

[Oriana · Rating 2 out of 5]

Although I used it as a bible while studying derivatives in France, it was merely due to the fact that the professor had co written the french version of this book. I found that it served as good starting point, but there weren't many details on the maths side - the jumps weren't always clear from one formula to another and explanations surrounding models were non-existent sometimes. For example, the binomial chapter included 2 separate approaches but they merged together in the explanation rather than having a distinct separation - horrendous when asked to valuate option values using the 2 ways.

[Mark Wilson · Rating 5 out of 5]

If you can understand everything this manual says, you are well on your way to understanding derivatives trading. However, it's not easy. Out of every 1,000 who say they understand everything it has to offer, perhaps only one really does. There are many other books on the subject. This is the one book you'll see every derivatives trader referring to-it's the Bible to them. If nothing else, this will teach you why derivatives traders are rewarded well.

[Iain Hamill · Rating 4 out of 5]

Admittedly not a cover to cover read, the chapters I needed were useful!

[Martin valenzuela · Rating 5 out of 5]

Best book ever

[Oliver · Rating 5 out of 5]

"STOP ROTE LEARNING"
- Jonathan Dark, Lectures 1,2,3,4,5,6,7,8,9,10,11,12

[Kirill · Rating 5 out of 5]

Хорошая книга с детальным и всеобъемлющим рписанием опционов и других производных инструментов, включая экзотические. Математическая часть немного устарела (вычислительные схемы), в остальном все описание еще актуально. Очень поучительные примеры из практики.

[Clare · Rating 4 out of 5]

A classic as both an introduction to the field, and a reference guide (my copy is dog-eared and falling apart, ten years later).

[Ming · Rating 4 out of 5]

This book delineates the mathematics of options and derivatives pricing very VERY well... too bad I wasn't smart enough to understand most of the more advanced concepts... har har har

[Michael · Rating 4 out of 5]

This is a very clearly written book and very thorough. It almost made a math type (like me) with no finance background competent at the topic. Almost.

[Dombercz · Rating 4 out of 5]

Comprehensive

[Abraham Farag · Rating 4 out of 5]

Written like a grad school textbook. Was very useful to me.
-Abraham Farag

[Yasiru · Rating 4 out of 5]

Haven't used it as a textbook, but it's a nice resource to look up instruments and see them in context.

[Draganka · Rating 5 out of 5]

The bible.

[Khushal · Rating 4 out of 5]

Good book but can ruin your life if you also have to give an exam based on this

[Philip Pastore · Rating 4 out of 5]

E' il libro più utilizzato riguardo i seguenti argomenti. Facilmente comprensibile, con molti esempi. Vengono esposti per vie traverse anche le principali istituzioni finanziarie di oggi. Interessanti le sezioni di approfondimento.
Come tutti i libri mainstream di finanza soffre di un certo grado di polarizzazione del pensiero (ambiente risk-neutral, comportamento perfettamente razionale ecc..).
Il libro è decisamente orientato all'execution ed è cablato per una conoscenzia in materia basso-media.
La matematica è molto semplice e a volte sfocia nella semplice definizione di tutte le variabili per poi applicare le varie formule in un modo deterministico e ingenuo.

[Eskay Theaters & Smart Homes · Rating 3 out of 5]

The default derivatives textbook in most MBAs in India, the book is dry and covers subject matter succinctly, it's in the hands of the average Indian B-School prof that it takes on the form of a greek novella in a kindergarten class.
Considering how much of our world is being risked (through overleveraging) by the instruments listed here (after all Buffett did call Options/Futures 'weapons of mass destruction'), it would make sense for the layperson to understand what these concepts are and how they are making financial markets akin to a Macau Casino.

[Elchin Jafarov · Rating 5 out of 5]

Despite some say the book is overrated, I find it quite challenging to write (I would even say develop) a textbook with such clear and comprehensive structure, as well as balanced explanations. Using the book for many years of learning/teaching finance prooved that it manages to clearly explain topics, which are mathematically complex for a beginner student or even intermediate financial practicioner.

[Viktor O. · Rating 5 out of 5]

I had a number of interesting discussions in the finances with Prof. John C. Hull in North America in 2005-2006. Therefore, I can certainly say that the book covers many interesting topics in the modern finances. Here, it makes sense to add that Investment in Capital Markets book by Viktor O. Ledenyov and Dimitri O. Ledenyov adds some new perspectives to the possible solutions of investments problems in the capital markets.

[David Novosardian · Rating 4 out of 5]

One of the first books on financial markets that had my back straight the entire time with new strategies and methods that fascinated me in the field of financial mathematics in the markets. From hedging derivatives to evaluating risk or assumptions and notations on deriving forward/future prices. This is one of those books that I will always go back to for information on certain topics.

4/5

[Jun · Rating 3 out of 5]

This is Natenberg for hardos who care about credit and like reading textbooks. Unless the reader has a significantly strong mathematics background, this may not be the best, or concentrated, work to begin their learning journey with.

[Alessandro · Rating 5 out of 5]

Il libro può sembrare spaventoso a prima vista per le dimensioni, ma in realtà la trattazione degli argomenti è molto scorrevole (ovviamente previa conoscenza della materia). Spesa un po' elevata per l'acquisto ma essendo l'unico testo in italiano ne vale la pena

[Freddie Barr-Smith · Rating 5 out of 5]

This book is for derivatives trading, what applied cryptography by schneier or security engineering by anderson is for cybersecurity. Very good, maths is tricky though.

[Er. Alam · Rating 5 out of 5]

A very good book to understand derivates and the mathematical principals behind it.

[Yoana Ilieva · Rating 5 out of 5]

my all time fav <3

[Eric · Rating 3 out of 5]

Good stuff here but way too technical/mathematical for me. Going to stick with basics....

[Salim Tlemçani · Rating 5 out of 5]

The finance bible. Cannot be rated less than 5 stars.