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Introduction to Futures and Options Markets, 3/e

Personal Portfolio Management: Fundamentals and Strategies, 1/e
(order desk copy)

John C. Hull, University of Toronto

This introduction to futures and options markets is ideal for those with limited background in mathematics. Based on Hull's Options, Futures and Other Derivatives, one of the best-selling books on Wall Street and in the college market.




Features | Table of Contents | Supplements |



Features

  • Provides software with the text for implementing many of the models.
  • Emphasizes the use of binomial trees for explaining how options are priced.
    • Shows how one- and two-step binomial trees can be analyzed, and develops the no-arbitrage and risk-neutral valuation arguments.
    • Provides material on binomial trees in the chapters on Options on Futures and Options on Stock Indices and Currencies.
    • Includes comprehenisive treatment of numerical procedures based on bionomial trees.
  • Devotes an entire chapter to swaps.
  • Devotes an entire chapter to options on futures.
  • Contains a simpler explanation of arbitrage arguments.
  • Uses no calculus, so the text is accessible for students with a limited mathematics background.
  • Contains many worked examples, featured in easy-to-read sections, such as From the Trader's Desk.
  • Features a wealth of institutional background that provides a real-world perspective.
  • Includes end-of-chapter quiz questions, with full answers.
NEW TO THIS EDITION:
  • NEW - Includes new Windows-based software, DerivaGem, that has been specifically designed by the author, to complement the material in the text.
    • DerivaGem allows readers to calculate prices, implied volatilities, and hedge statistics for European call and put options, six different types of exotic options, and three different types of interest rate options.
    • DerivaGem can be used to display the binomial tree used to value an option.
    • It can be used to plot any one of: option price, delta, gamma, vega, theta, and rho against any one of: asset price, strike price, interest rate, volatility, and time to maturity.
  • NEW - The presentation of swaps has been revised to reflect the use of swaps for asset management as well as liability management.
  • NEW - Discusses daycount conventions.
  • NEW - Covers scenario analysis and value-at-risk.
  • NEW - Chapter 16 has been rewritten to focus on the volatility smiles that are observed for equity options and currency options and how these are used in practice.
  • NEW - Chapter 17 has been rewritten to provide background information on mortgage-backed securities and to explain the standard market models that are used to value European bond options, interest-rate caps and floors, and European swap options.
  • NEW - Includes new end-of-chapter problems.


Features | Table of Contents | Supplements | Top


Table of Contents

    1. Introduction.
  1. FUTURES AND FORWARD MARKETS.
    1. Mechanics of Futures and Forward Markets.
    2. The Determination of Forward and Futures Prices.
    3. Hedging Strategies Using Futures.
    4. Interest-Rate Futures.
    5. Swaps.
  2. OPTIONS MARKETS.
    1. Mechanics of Options Markets.
    2. Basic Properties of Stock Options.
    3. Trading Strategies Involving Options.
    4. An Introduction to Binomial Trees.
    5. The Pricing of Stock Options Using Black-Scholes.
    6. Options on Stock Indices and Currencies.
    7. Options on Futures.
    8. Hedging Positions in Options and the Creation of Options Synthetically.
    9. Value at Risk.
    10. Valuing Options Numerically Using Binomial Trees.
    11. Biases in the Black-Scholes Model.
    12. Interest-rate Options.
Answers to Quiz Questions.
Computer Software.
Glossary.
Index.


Features | Table of Contents | Supplements | Top


Supplements

  • Instructor's Manual with Transparency Masters (0-13-905035-3); (90503-4)
    • Written by author.
    • Includes solutions to all problems in text.
    • Transparency Masters include all figures from text.
  • PowerPoint Slides (0-13-902868-4); (90286-6)
    • Created by author.
    • Download from link above.
    • Disks available from editorial.
  • DerivaGem Software, Version 2.2
    • For description, see above.
    • Pre-packaged with every text.
    • Also available from link above.
    • Surfing for Success in Finance (0-13-648460-3); (64846-9)


Features | Table of Contents | Supplements | Top


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