Rating: 
Summary: Covers All Hot Topics of Financial Derivatives
Review: As a undergrad finance student, John Hull's book on financial derivatices gave me a more in-depth understanding of the topic. Although some topics such as the derivation of the Black-Scholes model is hard to follow, the rest of the book should not be too hard for finance students.Value at Risk (VaR) is not discussed much in this edition. However, I know the writer is devoting an entire chapter on this topic in the fourth edition. Overall, it is definitely a good investment for students interested in this topic.
Rating: 
Summary: The Classic in Derivative Pricing Models
Review: This book ranks as my favorite book on derivative
pricing. Though, it may be a little intimidating
to one with little background but coming from
an engineering standpoint it is the only book
about derivative pricing that makes any sense. It
is clear, no shortcuts are taken and nothing beyond simple ODEs are assumed. I especially like
the appendices at the end of each chapter which gives the derivation of many of the models presented. It would be nice, however, if solutions to the problems would be provided. I have tried to read many books on probability, stochastic processes, and martingales but this is
the only book I have found that does not contain a lot of formalized junk but yet is theoretical enough to make many generalizations for pricing other derivatives.
Rating:
Summary: Excellent standard, introductory options text
Review: John Hull's options book is regarded very highly in the
field and is often quoted as a standard text for this
subject in both undergraduate and graduate level courses.
It strikes a good balance between the mathematical
theory of option pricing and the details of
the markets, though it does not say much about the
practical side of options trading.
It is, however, an introductory text. It does not dwell on
the theory, and leaves many of the results underived.
His section on numerical methods for solving complex
option pricing problems is very good, though there are
better (such as Wilmott's book).
Rating:
Summary: This is by far the best book on the subject.
Review: I have read most of the books on derivatives and mathematical finance. I have also read
the most important papers on the subject, and no book covers the subject so extensively
and so carefully. The difficult math is explained by Hull in a brilliantly intuitive way,
without sacrificing the mathematical rigor. He explains succinctly and accurately the heart of the
most advanced papers in the subject, in unpretentious terms, and always with the reader in mind
(unlike most of the other academics' attempt at writing a book.)
Having studied the subject in depth, from a practical and a theoretical point of view, I can say, without reservation,
that (up to 1996) this book is all you need to learn about the subject.
In fact, I dare say that if you read the book cover to cover you will be an expert in the subject.
I read the second version, and some of the most recent topics (like Value at Risk) are not treated in it,
but it is my understanding that the third edition includes all of these newer developments. If they are explained as all the other subjects in the 2nd edition, then they should be the best explanations around.
Excellent book for novices in the subject, excellent reference book for experts, great mathematical education for finance people,
and great financial exposition for mathematicians.
(From a mathematical point of view, the only details missing are the mathematical foundations of risk-neutral valuation, i.e. Girsanov's theorem)
This book should be read (and more importantly CAN be read) by any financial officer, county treasurer (is Orange County listening?), trader, regulator
investor and banker. I also recomend this book to unemployed mathematicians, physicists, and engineers. The starting salary for these
quantitative disciplines goes up by $30,000 a year after reading that book.
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.
Rating:
Summary: This is by far the best book on the subject.
Review: I have read most of the books on derivatives and mathematical finance. I have also readthe most important papers on the subject, and no book covers the subject so extensivelyand so carefully. The difficult math is explained by Hull in a brilliantly intuitive way, without sacrificing the mathematical rigor. He explains succinctly and accurately the heart of the most advanced papers in the subject, in unpretentious terms, and always with the reader in mind (unlike most of the other academics' attempt at writing a book.) Having studied the subject in depth, from a practical and a theoretical point of view, I can say, without reservation, that (up to 1996) this book is all you need to learn about the subject. In fact, I dare say that if you read the book cover to cover you will be an expert in the subject. I read the second version, and some of the most recent topics (like Value at Risk) are not treated in it, but it is my understanding that the third edition includes all of these newer developments. If they are explained as all the other subjects in the 2nd edition, then they should be the best explanations around. Excellent book for novices in the subject, excellent reference book for experts, great mathematical education for finance people, and great financial exposition for mathematicians. (From a mathematical point of view, the only details missing are the mathematical foundations of risk-neutral valuation, i.e. Girsanov's theorem) This book should be read (and more importantly CAN be read) by any financial officer, county treasurer (is Orange County listening?), trader, regulator investor and banker. I also recomend this book to unemployed mathematicians, physicists, and engineers. The starting salary for these quantitative disciplines goes up by $30,000 a year after reading that book.
Rating: 
Summary: All theory -- not practical at all
Review: Despite a wide coverage of topics, the book is way over priced. It is written at purely academic level and of limited use to practioners, quants, and traders who want to use and develop derivatives models. The books focuses on theory and the material is too simplistic. Important details on how to use or implement the models in practice is completely lacking. For instance, the book does not discuss the details for how to actually calibrate the parameters of the models to actual market data.
If you want to learn the material in detail and how derivatives securities are actually modeled and implemented in practice using real-world data, I would strongly recommend a book like Modeling Derivatives in C++ or Principles of Financial Engineering.
Rating:
Summary: The book must be updated with the emergence of BICs
Review: This book is just great. I just wish there could be a new edition that incorpoarate the BICs paradigm. More info on BICs can be found at http://www.4bics.org - BICs appears to be a too important concept to ignore,I understand its very recent but I hope prof hull will think about it
Rating:
Summary: Options, Futures, and Other Derivatives (5th Edition)
Review: Options, Futures, and Other Derivatives (5th Edition)
by John C. Hull has been widely adopted for its comprehensive coverage, exceptionally clear explanations of difficult material, and avoidance of nonessential math. The text bridges the gap between the theory and practice of derivatives and helps readers develop a working knowledge of how derivatives can be analyzed.
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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