Fundamentals Of Futures And Options Markets, Global 9th Edition

For courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.

An Easily Understandable Introduction to Futures and Options Markets

Fundamentals of Futures and Options Markets covers much of the same material as Hull’s acclaimed title, Options, Futures, and Other Derivatives. However, this text simplifies the language for a less mathematically sophisticated audience. Omitting calculus completely, the book is suitable for any graduate or undergraduate course in business, economics, and other faculties.

1. Introduction
2. Futures Markets and Central Counterparties
3. Hedging Strategies Using Futures
4. Interest Rates
5. Determination of Forward and Futures Prices
6. Interest Rate Futures
7. Swaps
8. Securitization and the Credit Crisis of 2007
9. Mechanics of Options Markets
10. Properties of Stock Options
11. Trading Strategies Involving Options
12. Introduction to Binomial Trees
13. Valuing Stock Options: The Black–Scholes–Merton Model
14. Employee Stock Options
15. Options on Stock Indices and Currencies
16. Futures Options and Black’s Model
17. The Greek Letters
18. Binomial Trees in Practice
19. Volatility Smiles
20. Value at Risk and Expected Shortfall
21. Interest Rate Options
22. Exotic Options and Other Nonstandard Products
23. Credit Derivatives
24. Weather, Energy, and Insurance Derivatives
25. Derivatives Mishaps and What We Can Learn from Them

John Hull is the Maple Financial Professor of Derivatives and Risk Management at the Joseph L. Rotman School of Management, University of Toronto. He is an internationally recognized authority on derivatives and risk management with many publications in this area. His work has an applied focus. In 1999 he was voted Financial Engineer of the Year by the International Association of Financial Engineers. He has acted as consultant to many North American, Japanese, and European financial institutions. He has won many teaching awards, including University of Toronto’s prestigious Northrop Frye award.

• The text covers the core material in Hull’s Options, Futures, and Other Derivatives in a way that’s easier for a larger audience of undergraduate students to understand.

• UPDATED! Streamlined material based on recent trends in the derivatives market makes the text both more appealing and logical.
• • The derivatives market’s move towards IOS discounting has continued since the last edition, and changes have been made to the first seven chapters to reflect this trend.
  • LIBOR discounting is no longer presented as a way to value instruments such as swaps and forward rate agreements. Instead, the valuation of these instruments requires a) forward rates for the rate used to calculate payments (usually LIBOR), and b) the zero-coupon, risk-free zero curve used for discounting (usually the OIS zero curve).

• NEW! New regulations concerning the clearing and trading of OTC derivatives has been expanded on throughout the text.
• REVISED! Chapter 7 on swaps has been majorly reworked to improve material presentation and reflect the derivatives market’s move to OIS discounting.
• UPDATED! Discussion of the impact of daily settlement when futures contracts are used for hedging has been expanded.
• UPDATED! Details on the calculatio