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Summary: A nice introduction
Review: As an introduction, this text comfortably serves it's purpose. Many advanced subjects are *surveyed* -- including numerical methods for pricing instruments, lattice/tree methodologies, VaR, credit VaR, interest rate & FX derivatives, -- as well as more vanilla subjects such as the definition of option clearing houses, market makers, `greeks', hedging, speculation, and the like. The text includes a clear writing style, while its mathematical rigor is not pitched at the mathematicians but is instead presented affordably and appropriatly at an introductory audience. For researchers there are ample pointers to the literature that they will find necessary for passage to the next level.
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Summary: University of CA, Riverside - BSAD 137 - Speculative Markets
Review: As a student currently using this book, my feeling is somehow uneasy about all the positive feedbacks readers have given. One main reason is its lack of numerical examples on many theoratical conclusions the author has reached. Nonetheless, through the detailed explaination surrounding the central issue, the pricing of derivatives, the book showed its true merit. Two most important points discussed are the Put-Call Parity, and the Block and Scholes Equation. PCP basically explaines the relationship between put price and call price. Because of the interest rate effect and the insurance effect, American call options are often not exercised early. American puts are exercised early if deep in the money. When dividend is considered, we adjust the equation to reflect the newly priced stock (and thus option). B-S (errr...=P) equation, on the other hand, shows E(r), or expected return, independent nature of the option pricing. Since expected growth rate of stock price offsets the discount rate used to value derivatives in a risk-averse world, B-S equation is justified. Supposedly, if any deviation of price appear from these two parts, arbitragy oppurtunity exists for traders.
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Summary: About this book
Review: As the same as other people's opinion, I appreciate this book very much. I am a student majoring in finance, and feel that this book is really a good start point in understanding derivatives. Although I think that some parts of John Hull's description could be better, for example offer more formal and detailed proofs in his work, this is not an importnat drawback at all. If someone want to know more about in this field, of course he or she should not just only read this book. Taking an overview of derivatives from this one and learn more in-depth from other books or papers is a right attitude. About the price, as a student outside US, I feel it is a little expensive, though I can buy international edition of this book. Many textbooks in US are expensive if using the standard of my country, but I know that the authors devote themselves to their works more than those in our country. John Hull must earn much from his book, but his effort is worth it.
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Summary: Clear and comprehensive, though dry
Review: I've been teaching Finance courses (Mathematical Finance, Financial Programming) for several years now, and this text is the only one that has remained with me the entire time. It is a little too sketchy to serve as a sole textbook, but works well as an irreplaceable reference text that can be counted on for a few words on practically anything having to do with derivatives.One of the main advantages of this book is that it has very few mistakes. This is unfortunately quite rare for books in the field. One glaring error -- ignoring the early exercise boundary condition while solving the matrix equations for an implicit finite difference scheme.Frequent editions of the book keep me buying new copies, but the new version is usually worth it.
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Summary: Must-read, introductory text !!!
Review: Coming from a non-finance background, I was quite hesitant about the book. But I had heard that the book was a bible, and anyway, my professor wanted me to buy it. I needn't have feared. The book easily lived upto its reputation :)This is *the* introductory text to have, in order to study options and futures. The amount of math is just right, and the language is easily understandable (at least I wasn't baffled by the jargon). If you are new to the field, go for this one as your first book. You won't regret it!
Rating:
Summary: An excellent textbook for both students and practioners
Review: This is an excellent book on derivatives and risk management. I would like to recommend it to anyone who wants to learn financial engineering. Prof. Hull is working on a new edition of this popular textbook, which will include much more on advanced risk management techniques, e.g. VaR and GARCH model.
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Summary: Great introduction to pricing of derivatives.
Review: Hull gives a great general discussion of the theory of pricing futures, options, and even exotics. It could use a bit more mathematical rigor when doing derivations, but is better than the other books available on the subjects covered. I give it 5 stars.
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Summary: Good introduction for Finance-Students
Review: A good book which in combination of Cox, Rubinstein gives one a very much complete introductory into the world of derivatives. At places it lackes the necessary explanations, but in general a very good overview on the matter!!!
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Summary: Good book for those starting out in derivatives analysis
Review: In combination with Salih Neftci's "Introduction to the Mathematics of Financial Derivatives", these books should provide the enthusiastic reader with enough foundation to pursue more advanced topics in derivative pricing.
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Summary: Excellent introduction in the world of derivatives
Review: This book is definitely a must for all people interested in derivatives. It is simple and sophisticated at the same time. Hull's approach of teaching basics aswell as pricing methods is unique. This book has helped me a lot at grad school & at work. Two Thumbs up!
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