Options, Futures, and Other Derivatives by John C. Hull (Book Review)
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- Опубліковано 8 лют 2025
- 5/5 Star review for Options, Futures, and Other Derivatives.
This book is a great book for a vast over view of financial engineering. I highly recommend this book as a starter book for financial engineering masters students or those who want to be traders in any products. The book does a great job at explaining theory, math, and industry practices.
This book is not meant to cover all financial engineering at a great depth. To really dive deep in specific areas of financial engineering you will need to get other books that specialize in each topics.
Buy the book here: amzn.to/2P2weZs
TABLE OF CONTENTS
Chapter 1. Introduction
Chapter 2. Mechanics of Futures Markets
Chapter 3. Hedging Strategies Using Futures
Chapter 4. Interest Rates
Chapter 5. Determination of Forward and Futures Prices
Chapter 6. Interest Rate Futures
Chapter 7. Swaps
Chapter 8. Securitization and the Credit Crisis of 2007
Chapter 9. Mechanics of Options Markets
Chapter 10. Properties of Stock Options
Chapter 11. Trading Strategies Involving Options
Chapter 12. Binomial Trees
Chapter 13. Wiener Processes and Ito’s Lemma
Chapter 14. The Black-Scholes-Merton Model
Chapter 15. Employee Stock Options
Chapter 16. Options on Stock Indices and Currencies
Chapter 17. Options on Futures
Chapter 18. Greek Letters
Chapter 19. Volatility Smiles
Chapter 20. Basic Numerical Procedures
Chapter 21. Value at Risk
Chapter 22. Estimating Volatilities and Correlations
Chapter 23. Credit Risk
Chapter 24. Credit Derivatives
Chapter 25. Exotic Options
Chapter 26. More on Models and Numerical Procedures
Chapter 27. Martingales and Measures
Chapter 28. Interest Rate Derivatives: The Standard Market Models
Chapter 29. Convexity, Timing, and Quanto Adjustments
Chapter 30. Interest Rate Derivatives: Models of the Short Rate
Chapter 31. Interest Rate Derivatives: HJM and LMM
Chapter 32. Swaps Revisited
Chapter 33. Energy and Commodity Derivatives
Chapter 34. Real Options
Chapter 35. Derivatives Mishaps and What We Can Learn from Them
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I got the french version of the 10th edition for free at my university. God bless, it happened like a day or two after I started thinking about purchasing it.
Great review. I don't have too much knowledge in this field, but bought the book. Let's see if I understand anything...
well?
It's definitely worth it if you're interested at all. They start out with an introduction which isn't too difficult to understand. Though you do need to focus hard on it. And they built on that as the book goes on. I haven't read the entire thing. But the book does a good job at extensively explaining how things work. So it was worth the buy for me. @@ThePlugTurtle
Dimitri, have you read Sheldon Natenberg's Option Volatility and Pricing? Thoughts?
binomial and trinomial tree methods was not only just introduced in Chapter 13, but also explained in many following chapters covering an extensive range of topics in his book
Why would you need to borrow a pdf copy of a book?
What books were required in grad school?
Finally! Thank you very much Dimitri. I will buy Hull's book tomorrow. Sherve's one is very deep indeed, but do you know the main difference between sherve's and arbitrage theory by bjork?
That's a really good question. I am only part way through Bjork's book right now but I'll give you my opinion based on my experiences thus far. Both books cover a lot of materials and are very detailed. I have spent more time referencing Shreve's books as they were used in my first financial engineering class on stochastic calculus (I have highlighted a lot of notes). I think Shreve does a really good job at explaining the theory which is important when trying to figure out where and how to use different equations and derivations. I prefer Shreve over Bjork however they are both really well written and both have the math rigor I would expect. If it comes down to cost, Bjork's is cheaper at $70.66 (amzn.to/2oxuqMF) on Amazon whereas Shreve has two books at $47.99 + $57.70 and the first book is really small (187 pages).
@@DimitriBianco looking at the table of contents and some example of pages, sherve's book seemed to be a little bit better in my opinion too. One time one guy who studied quantitative finance told me to use sherve's after Hull's, and finally after that to use bjork to master it all, so he meant that bjork is a little bit deeper, but in not so sure. However, in the Italian Amazon we find those books at half of price. Hull's book for example costs 60€ which are equivalent of about 67 dollars right now. Sherve's one I could find both at 60€ as well. I'd recommend you to look at Amazon.it when you're looking fore some book, sometimes you find them in English!
Where do we get the solutions of the book
if you say it 3 more times he might answer.
awesome review! many people has recommended me this book. Do you need another book as a prequel?
Fundamentals of Futures and Options Markets
Fundamentals of Futures and Options Markets is really the light business version. I would start with "Options, Futures, and Other Derivatives" and then see what areas you feel like you are lacking in. You might need to grab a math or stats book for example to help fill some of the base materials.
Can anybody tell the book on VaR, Dmitri has been mentioning here? Thank you
The VaR Modeling Handbook by Greg Gregoriou
@@DimitriBianco Thankyou
Earlier I used to interact with you saying I was an accountant but I have upskilled my that from High school to PG level mathematics and tried to answer Steve Shreve's CTM (book2).
I am in UK now
I need your help
I am struggling to find the proof for the below:
Pg 477 Theorem 11.4.5
Assume that the jump process ….is a martingale and the integrand…. is left continuous and adapted…..
I do not have the proof for this theorem. Do you think you will be guide or help me with the proof.
I am somehow uncomfortable that I could not manage to get this proof.
Kindly help if possible.
@@kdpr007 I haven't studied derivatives in a very long time however page 26 of the document linked should help.
sites.math.rutgers.edu/~tmp140/courses/Spring2017/M622/Notes2.pdf
Hey Dimitri, do you think the math in Bjork's book:(Arbitrage theory in continuous time) is more sophisticated to grasp it comparing to Shreve's books?
It has been many years since I read these books but I think they are fairly similar. Shreve's books take more time to lay the foundations while Bjork jumps to the applications more quickly. In my MFE programs they taught both of Shreve's books in the first class and then used Bjork's book in the second class. Once you have the basics down it's easier to look at more specific applications such as the Mutual Fund Theorems which is covered in Bjork's book.
@@DimitriBianco thanks for this useful reply!
Hi Dimitri, in terms of books on statistics, what would you recommend? What are your persona favourites?
If you are looking for a book to cover a lot of topics from beginner to expert I would consider "Introductory Econometrics A Modern Approach by Jeffrey Wooldridge" ( amzn.to/2STSdEc ). The link for the book is to the 6th edition which is cheaper. It is the standalone version meaning you don't have access to their online material but I've never used the online materials and don't think it will matter. This book is hardcover and 912 pages. I still use this book today for work to get a better understanding of different concepts. The title has econometrics in it but it covers everything from OLS regression to time-series. I did a book review on it as well ( ua-cam.com/video/uK8ZmKWnBuQ/v-deo.html ).
If you are looking for a statistics book related to financial data specifically, I highly recommend, "Statistical Analysis of Financial Data in R by Rene Carmona." ( amzn.to/2Cli4O6 ) The book covers data exploration, parametric and non-parametric approaches, and some time-series. The book has a bunch of examples all written in R code which is great if you want to learn to program some of the analysis as well. If you don't care about programming then you can always buy the older version which has code for S-Plus (the old version of R). I actually have this book however a lot of the libraries non longer exist but the hardcover book is much cheaper ( amzn.to/2TKYDp5 ).
Hey I'm from Mexico and I recently discovered your channel. I am studying Financial Engineering. I have financial engineering, stochastic calculus, time series, probability, quantitative finance (in this we use Paul Wimmout's book), portfolios, data science, a.i., simulation, risk analysis and risk managment. and market microestructure and trading systems. What is you opinnion? Is my degree a fake or a real Financial Engineering program?
Hola. En donde estudias tu ingeniería financiera, se ve bastante bien y rigurosa la carrera o más bien maestría
Def fake.
@@TheRequiemofdesire Probablemente en ITESO , pero el camarada no contesta.
What can you say about Robert Mc Donald's "Derivatives Markets"?
It's hard for me to give a detailed review of the book since I've never had one to look through. But from looking at the table of contents and other reviews, it looks like a general overview of financial engineering with more focus towards business students. Overall it might be similar to Hull's book but it's hard to judge without opening the book.
Hi, any suggestion specific for Crypto quants education? Books? Courses? Online courses? Or what part of financial engeneering should we keep valid for Crypto finance?
To be honest I'm a bit in the dark on the crypto world. I know universities have been teaching it but I'm not sure which books they recommend. My advice would be to join a crypto club on LinkedIn and see what others are doing. A lot of the people in that area are excited to educate others.
Thank you sir
Hey Dimitri,
Thanks for the awesome book review. My question is, I'm a bit confused between authors. I'm getting a book with the same title but the authors are John C Hull and Basu Sankarshan, Ninth Edition, Pearson Publisher. Can I go for it? Costs around $10.
Or the book must be written by John C Hull ONLY.
I believe it is the same book but the Indian version. My guess (as I don't know) would be that some more country specific information was added along with the original Hull version.
@@DimitriBianco A'right Dimitri. I've ordered it. Will match the Table of Contents with the one provided by you.
Thanks a lot man.
I came across this book at a goodwill for 1$. However it is the second edition, in your opinion, do you think the later editions give enough valuable information to consider buying one or is the theory essentially the same throughout. I know mathematics book tend to come out with new edition every year to only have certain example modernized.
The basic theory will be the same however they do update the "current events" section. There may be new or more models in newer versions though as well. I would take a look at the table of contents of both books (newest version is online) and then make a decision from that.
Ordered this about an hour ago, curious what you're gonna say about it.
This was great, I been tryin to find out about "trader trading option" for a while now, and I think this has helped. You ever tried - Winoorfa Option Olegroson - (search on google ) ? Ive heard some amazing things about it and my mate got amazing success with it.
Hi Dimitri, does finance theories work?
Yes financial theories work to grow capital. Quantitative finance is based on financial theory as well. Now that being said, there is no easy or quick way to making money. Even large quantitative firms spend millions on finding opportunities and many of them don't turn out.
One of the greatest concepts in finance is diversification. It isn't super exciting however it works well over long periods.
Is this book good for a beginner ?
@RWarrior777 yes it covers a lot of material at a high level. It is often the first book many quants start with.
@@DimitriBianco Thank you. I will be reading that book. Great video and explanation.
Keep up the good work 👍
Is there a big difference between 7th and 9th edition? I can buy 7th for a half price but if you recommend to but 9th i will buy jt :D
If it's for a class it might matter as the problems could be different. If it's for learning then buy the cheaper one.
Hi!
I’ve already had the 9th version, is it worth to buy the newest one?
Thanks!
No, I wouldn't buy the newest one.
Because they don't expand almost anything, it is just to sell it again.
This book is in my opinion not very useful since it is mostly aimed at MBAs. If you want to become a quant you are in my opinion much better off with Arbitrage Theory in Continuous Time by Tomas Bjoerk.
5/5 for this guys voice
lol
Hi, I'm just wondering if there is any difference between this book ( Options, futures, and other derivatives) vs the Fundamentals of Futures and Options Markets. John C. Hull wrote both of these books.................................... I own this book, but I need fundamentals of Futures and options Markets Thanks.
The Fundamentals book is written for business students as it's very simplified. We call it baby Hull. The options book is a lot larger and is math based. It's referred to as big Hull.
@@DimitriBianco Ok, thanks for the response.
I have it form pdf No need to buy it give me ur whatssup i will To send u this books
@@happyname4693 Dang, I already got it for $70 in the form of ebook. Thanks anyways.
@@happyname4693 any chance you can send me the ebook? rsoberai.96+yt@gmail.com
hi dimitri, can you do a give away of john c hull?😅😁
A review of a book you couldn't even be bothered to buy, or read from cover to cover!?!?!
1. That is stealing
2. It is not a proper review...
I am out at 01:32 🤦♂
Who borrows a pdf? 😂
Where do we get the solutions of the book
if you say it 3 more times he might answer.
Where do we get the solutions of the book
if you say it 3 more times he might answer.