Options, Futures, and Other Derivatives, 10th edition

Available with the latest version of DerivaGem software--includes two Microsoft Excel® applications, Options Calculator, Applications Builder, and a Monte Carlo simulation worksheet:

• The Options Calculator features easy-to-use software to help value a wide range of options.

• The Applications Builder enables instructors and students to build their own applications, using a variety of Excel functions. Students can explore the properties of numerical procedures and options more effectively, and instructors can design more engaging assignments around custom applications. It also includes a number of sample applications.

• A Monte Carlo simulation worksheet illustrates how to use the simulation for valuing options.

Bridges the gap between theory and practice--considered “the bible” of derivatives markets by practitioners, the best-selling college text provides the most up-to-date information on key topics:

• Regulations for over-the-counter derivatives

• Overnight indexed swap (OIS) rates

• The Black-Scholes-Merton formulas

• Credit risk, discount rates, and funding costs

• Perpetual options and other perpetual derivatives

• Products such as DOOM options and CEBOs offered by CME Group

• Central Clearing, margin requirements, and swap execution facilities

• One-factor equilibrium models of the term structure

Provides a delicate balance of mathematical sophistication--careful attention to mathematical concepts and notation:

• Expanded numerical examples of key concepts

• End-of-chapter appendices for non-essential mathematical material

• Detailed explanations of concepts likely new to students

Offers a comprehensive understanding of important topics--includes helpful resources for teachers and students:

• Hundreds of PowerPoint^® slides are available for download from Pearson’s Instructor Resource Center or the author’s website.

• The Solutions Manual features answers to the “Questions and Problems” at the end of each chapter.

• The Instructor’s Manual contains solutions to all end-of-chapter exercises, including “Further Questions” sections. The manual also includes test bank questions, relevant Excel worksheets, and notes on course organization and teaching each chapter.

• Technical Notes elaborate on points made in the text and can be downloaded from the author’s website at www.rotman.utoronto.ca/~hull/TechnicalNotes.

• UPDATED! Chapter 7 has been rewritten to improve presentation and reflect changing market practices in relation to swaps.

• NEW! Chapter 9 has been added to cover valuation adjustments, such as CVA, DVA, FVA, MVA, and KVA.

• NEW! Chapter 31 provides details about equilibrium models of the term structure, which are widely used in long-term scenario analysis.

• EXPANDED! Negative interest rates are now covered throughout the book to reflect a number of European and Asian markets.

• EXPANDED! More detailed explanations give a fuller picture of the calculation of Greek letters and smile dynamics.

• EXPANDED! Discussion of the expected shortfall measure and stressed risk measures has been expanded to reflect their increasing use in regulation and risk management.

• EXPANDED! Increased coverage of the SABR model gives students a more firm grasp on stochastic volatility.

• UPDATED! Materials on CCPs and OTC derivative regulation includes the most current information.

• UPDATED! Examples have been revisited to reflect current market conditions.

• REVISED! Improved material on martingales and measures, tailing the hedge, bootstrap methods, and convertible bonds helps students better understand important concepts.

• EXPANDED! End-of-chapter problems have been expanded and revised.