Description
Based on Hull's Options, Futures and Other Derivatives-the seventh edition of Fundamentals of Futures and Options Markets presents an accessible and student-friendly overview of the topic without the use of calculus. Packed with numerical examples and accounts of real-life situations, this text effectively guides students through the material while helping them prepare for the working world.
The seventh edition addresses and analyzes the impact of the current financial crisis.
Present the basics: Material that's accessible for beginners. Fundamentals of Futures and Options Markets covers the core material addressed in Hull's Options, Futures and Other Derivatives but does so in a way that's easier for undergraduate students to understand. So whether it's your first day of college or you're a tenured professor, this book is on your level.
Offer the latest software: DerivaGem version 1.54 is included with this book. Version 1.54 of DerivaGem allows credit derivatives to be valued, is compatible with Macs and Windows, and consists of two Excel applications:
The Options Calculator consists of easy-to-use software for valuing a wide range of options.
The Applications Builder consists of a number of Excel functions from which users can build their own applications. It includes a number of sample applications, enables students to explore the properties of options and numerical procedures more easily, and allows for additional assignments to be designed.
New to This Edition
New Chapter! Derivatives Markets in Developing Countries looking at the progress in derivatives markets
Encourage self-assessment and practice: End-of-chapter quizzes and problems. Students will be able to assess their knowledge with the seven quiz questions found at the end of each chapter (excluding the final chapter). This text also contains about 300 Practice Questions and over 100 Further Questions.
Many new end-of-chapter problems have been added to this edition.
Keep it current: New and improved material. In an effort to update the material and improve the presentation, many new changes have been made to the seventh edition including two new chapters:
Chapter 8: Securitization and the Credit Crisis of 2007
Chapter 14.Derivatives markets in developing countries
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. Introduction to Binomial Trees Chapter 13. Valuing Stock Options: The Black-Scholes-Merton Model Chapter 14.Derivatives markets in developing countries Chapter 15. Options on Stock Indices and Currencies Chapter 16. Futures Options Chapter 17. The Greek Letters Chapter 18. Binomial Trees in Practice Chapter 19. Volatility Smiles Chapter 20. Value at Risk Chapter 21. Interest-Rate Options Chapter 22. Exotic Options and Other NonStandard Products Chapter 23. Credit Derivatives Chapter 24. Weather, Energy, and Insurance Derivatives Chapter 25. Derivatives mishaps and What We Can Learn From Them