Fundamentals of Futures and Options Markets, Global Edition
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 2.01 is included with this book. Version 2.01 of DerivaGem allows credit derivatives to be valued, is compatible with Macs and Windows, and consists of two Excel applications:
The chapter on swaps (chapter 7) reflects the trend in the market toward OIS discounting. It explains how swaps can be valued using both LIBOR and OIS discounting.
New non-technical explanations of the Black-Scholes-Merton formula are provided in chapter 13 and an appendix to chapter 12 outlines how the formula can be derived from binomial trees.
New material has been added on principal protected notes (chapter 11) reflecting their importance in the market. Products such as DOOM options and CEBOs offered by the CME Group are covered (chapter 9). The material on exotic options (chapter 22) has been expanded to include a discussion of cliquet and Parisian options. The material on credit derivatives (chapter 23) has been updated and expanded. Value at risk is explained with an example using real data (chapter 20). The example and accompanying spread sheets have been improved for this edition. This makes the presentation more interesting and gives instructors the opportunity to use richer assignment questions.