Rating: 
Summary: A Bible for the Derivatives market
Review: This is a comprehensive book that is easy to read both as a reference book and as a learners guide to the derivatives market. It is an excellent guide for stock-brokers, economists, mathematicians and anyone interested in the derivative markets who possess a fair understanding of probability theory and a basic knowledge of stochastic calculus. The book deals with such issues of different types of options, portfolio hedging, options pricing, stock market models (e.g. Black-Scholes and Brownian motion) and the various jargon and equations used in the option market. As other readers have suggested much of the book may be beyond certain readers who lack the mathematical background. For those interested in the subject and with a mathematical knowledge they should find this book succint, comprehensive and accurate.
Rating:
Summary: Best Overall Derivatives Reference
Review: John Hull manages to give a useful overview of all of the major derivatives products. He gives methods of valuation that are easy to understand. The first step to understanding is to get the correct terminology and breadth. Critics might say he doesn't give the most technical valuation techniques. That's not the point of a work like this. This is a reference which promotes illumination and allows one to integrate knowledge in the entire field. Detailed pricing models for each of these products and sophisticated yield curve building methods require additional study and separate debate. No one said it wasn't work, but this gives the dedicated professional the best cognitive guide book in the field. The coverage of credit derivatives is light, however. In addition to this book, I also highly recommend Tavakoli's "Credit Derivatives & Synthetic Structures".
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Summary: Simply the Best!
Review: This is the bible of options and futures markets. It is very well written, clear, and relatively easy to understand. However, you have to read it carefully as it minces its words. Every sentence is packed with information and is important. You may find 'easier' books, but they will not go the distance. So, save your money and get the best of them all. Risk Magazine lists this book as #4 among most widely cited papers/books between 1988 and 2003. No surprise there!
Rating: 
Summary: Good Overview but Needs Supplements
Review: Hull's book is an overview of derivatives using simple examples and scaled down math. The book could benefit from the use of PDEs and more practical examples of applications. Despite those shortcomings, this is still the best overall introduction to this subject on the market. The only serious drawback is ignoring the substantial risks and value dislocations due to documentation in the derivatives market. Applications and documentation risks are clearly explained for one of these products in Tavakoli's "Credit Derivatives" (2nd Edition). For professionals who want to know how to apply derivatives in structured finance, I highly recommend Tavakoli's just released book: "Collateralized Debt Obligations and Structured Finance".
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Summary: Exahustive, but complicated and very user-unfriendly
Review: This book seems to be very popular in MBA/Computational Finance courses in the US. However, whether the popularity (in the MBA level) stems from the readability quality of the book itself, is doubtful. The book has its merits- it is comprehensive, has all the right materials, and also the derivations of all the complicated formulae. However, the manner in which the material is presented can only be described as unimaginative. There is a constant stream of cross-references throughout the book, which will leave the reader feeling frustrated. The book goes forward in fits and starts and there is a distinct lack of cohesion in the treatise. Also, the book assumes that the reader is not mathematically sophisticated, but uses shortcuts and jumps computational steps regularly, which adds to the students' woes. The description of the different types of options are pleasant to read, and so also is the chapter on value at risk, but the rest of the book leaves the students confused. To read this book, the reader should be adept in using standard mathematical tools like arithmetic and algebra and also be somewhat proficient in probability. However, this book is great for practitioners. I have simulated all sorts of options scenarios, from simple Black-Scholes model, to the AMM approach, barrier options and multinomial models. For each of these models I found direct or indirect help from the Hull book. For beginners, I would recommend the book by Jarrow and Turnbull and advise them to keep this book as a reference for the future.
Rating:
Summary: Good overview but not very student-friendly
Review: The book has its merits- it is comprehensive, has all the right materials, and also the derivations of all the complicated formulae. However, the manner in which the material is presented can only be described as unimaginative. There is a constant stream of cross-references throughout the book, which will leave the reader feeling frustrated. The book goes forward in fits and starts and there is a distinct lack of cohesion in the treatise. Also, the book assumes that the reader is not mathematically sophisticated, but uses shortcuts and jumps computational steps regularly, which adds to the students' woes. The description of the different types of options are pleasant to read, and so also is the chapter on value at risk, but the rest of the book leaves the students confused. To read this book, the reader should be adept in using standard mathematical tools like arithmetic and algebra and also be somewhat proficient in probability. However, this book is great for practitioners. I have simulated all sorts of options scenarios, from simple Black-Scholes model, to the AMM approach, barrier options and multinomial models. For each of these models I found direct or indirect help from the Hull book. For beginners, I would recommend the book by Jarrow and Turnbull and advise them to keep this book as a reference for the future.
Rating:
Summary: Very useful manual for practitioners
Review: This is a great manual for market practitioners. It does not use detailed math, does not go into issues of corporate finance. But it is very easy to follow and it is "complete". More than that, the book is to the point and very clear. Market professionals will find the examples spread around the book very useful for their daily work. The surprising new book by Nefci which I just got, but did not have time to study in detail, seem to provide all the missing links. I had used an earlier edition of Hull, and it appears that John Hull adds all the relevant material needed for market finance with each new edition. In fact I have purchased several books on Mathematical Finance and Derivatives but few of them remain on my desk for future consultation.
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Summary: One of the great foundation texts in finance(******) 6 stars
Review: I am a huge fan of this book. The fourth edition was the single most influential text in my study for my MBA. It opened new kinds of thinking for me and helped me understand the intuitions and they methods for valuing the various kinds of derivatives. While the language is not simple, it is not arcane. Some complain that the mathematics are not rigorous. So what? There are such books on the market and are suitable for those that want them. This is the standard book for thousands of MBAs who need a solid foundation, but do not need to be able to higher math to understand how a binomial tree works or to even create one my hand. Certainly, it is helpful to understand the math as deeply as you can. However, the reality is that most of the time practitioners use pre-made tools to run their Monte Carlo simulations rather than programming from scratch. There are several new chapters on very helpful and interesting topics (using futures for hedging, numerical procedures, swaps, credit risk, real options, insurance, derivative crises, and more). Some of this is new and some adapted from previous editions. Other material has been rewritten and clarified. DerivaGem 1.5 is included with the book, but a URL is provided to get the latest version from Prof. Hull's website. This is a terrific book and I consider it one of the most valuable on my shelf of business texts. It is one I would never want to be without and one of the few I am willing to keep up with the new editions. While no book is perfect for every use in every situation, this is one of the great foundation texts.
Rating:
Summary: Outstanding
Review: This is the only solid and intuitive book on Derivatives. If you need a a intro this is the way to go. If you need something with measures and topological spaces look into Karatzas. I beleive this book has all the required material for a quant, at an early stage.
Rating:
Summary: Excellent Introduction
Review: John Hull wrote the best work on options and other derivatives. This is the book which will explain to the reader the fascinating world of derivatives and is a great introductory stuff. By no means you should think that this book is just an introduction to the subject. While it starts with assuming that the reader does not have any background on the subject, it goes on deeper into all the instruments. By now Hull is a classic and most of the teachers of derivatives know the book. But in case you are a student looking for a good book on derivatives you should buy this one. It starts with forwards, futures and goes deep into the futures markets, giving tables, newspaper quotes etc which really help in understanding the topic. then, we go on to options. various types of options, exotic options are all covered. the pricing of options is taken up next and the black-sholes equation explation of hull is excellent. in case you are not very comfortable with numbers and calculus,you can easily skip that stuff by just reading about the pricing model. binomian trees are also well covered. swaps and types of swaps are well covered. One area that Hull might want to improve upon is the addition of new derivatives like Credit Derivatives, WEather Derivatives in the book. Maybe a bit more info on VaR modelling etc could be given. All in all, this is a great book on options and other derivative securities.
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