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Download Options Futures And Other Derivatives 8th Edition Pdf for Free: Learn from the Experts in Quantitative Finance
Options Futures And Other Derivatives 8th Edition Pdf Free Download
If you are interested in learning about options, futures and other derivatives, you might have heard of the book Options Futures And Other Derivatives by John C. Hull and Sankarshan Basu. This book is one of the most popular and comprehensive textbooks on derivatives markets, quantitative finance and risk management. It covers both theoretical and practical aspects of derivatives pricing, hedging, trading and regulation.
Options Futures And Other Derivatives 8th Edition Pdf Free Download
In this article, we will tell you everything you need to know about the 8th edition of this book, which was published in 2012. We will explain what are the main features and benefits of this edition, what are the main topics covered in it, and how you can download it for free in pdf format. By the end of this article, you will have a clear idea of whether this book is suitable for your needs and how you can get access to it.
What is the 8th edition of Options Futures And Other Derivatives by John C. Hull and Sankarshan Basu?
The 8th edition of Options Futures And Other Derivatives is an updated and revised version of the previous editions, which have been widely used by students, instructors, practitioners and researchers around the world. The authors, John C. Hull and Sankarshan Basu, are both renowned experts in the field of derivatives and finance. John C. Hull is a Professor of Derivatives and Risk Management at the Rotman School of Management at the University of Toronto. Sankarshan Basu is a Professor of Finance and Accounting at the Indian Institute of Management Bangalore.
The 8th edition reflects the latest developments and trends in the derivatives markets, especially after the global financial crisis of 2007-2009. It incorporates new material on credit derivatives, swaps, Greek letters, binomial trees, volatility smiles, interest rate futures and more. It also provides more examples, exercises, problems and case studies to enhance the learning experience.
What are the main features and benefits of the 8th edition?
Some of the main features and benefits of the 8th edition are:
It offers a clear and concise introduction to options markets and futures.
It balances essential and non-essential mathematics and presents many numerical problems for better understanding.
It covers both theoretical and practical aspects of derivatives pricing, hedging, trading and regulation.
It reflects the latest developments and trends in the derivatives markets, especially after the global financial crisis of 2007-2009.
It incorporates new material on credit derivatives, swaps, Greek letters, binomial trees, volatility smiles, interest rate futures and more.
It provides more examples, exercises, problems and case studies to enhance the learning experience.
It comes with a CD that contains useful applications and spreadsheets.
It is suitable for beginners and advanced learners alike.
How to download the 8th edition pdf for free?
If you want to download the 8th edition pdf for free, you have a few options. One option is to use a file-sharing website that hosts the pdf file. However, this option may not be legal or safe, as you may violate the copyright of the authors or publishers, or expose your device to malware or viruses. Another option is to use an academic website that provides access to the pdf file. However, this option may require you to have a subscription or affiliation with a university or institution, or to pay a fee. A third option is to use a search engine that can find the pdf file from various sources. However, this option may not be reliable or accurate, as you may encounter broken links, low-quality files or irrelevant results.
The best option is to use a reputable and trustworthy website that can provide you with a high-quality and legal pdf file of the 8th edition. One such website is PDF Drive, which is a free online library that offers millions of books in pdf format. PDF Drive has a copy of the 8th edition of Options Futures And Other Derivatives by John C. Hull and Sankarshan Basu, which you can download for free in just a few clicks. Here are the steps to download the pdf file from PDF Drive:
Click on the green button that says "Download (PDF)".
Wait for a few seconds until the download link is generated.
Click on the blue button that says "Download PDF".
Save the pdf file to your device.
That's it! You have successfully downloaded the 8th edition pdf for free from PDF Drive. You can now enjoy reading the book on your device or print it out if you prefer.
What are the main topics covered in the 8th edition?
The 8th edition of Options Futures And Other Derivatives covers a wide range of topics related to derivatives markets, quantitative finance and risk management. The book is divided into 32 chapters, which are grouped into six parts. Here is a brief overview of the main topics covered in each part:
Trading strategies involving options
This part introduces the basic concepts and terminology of options markets and futures. It explains how options are traded, how they are priced, how they are used for hedging and speculation, and how they can be combined to create different trading strategies. Some of the topics covered in this part are:
Introduction
Mechanics of futures markets
Hedging strategies using futures
Determination of forward and futures prices
Interest rate futures
Mechanics of options markets
Properties of stock options
Trading strategies involving options
Binomial trees
The Black-Scholes-Merton model
Greek letters
Introduction to binomial trees
This part introduces the binomial tree model, which is a simple and intuitive way of pricing options and other derivatives. It shows how to construct binomial trees for different types of underlying assets, how to calculate option values at each node of the tree, how to use risk-neutral valuation and no-arbitrage arguments, and how to handle dividends and early exercise features. Some of the topics covered in this part are:
A one-step binomial model
A two-step binomial model
A multi-step binomial model
Options on stock indices and currencies
Options on futures
Model of the behavior of stock prices
This part introduces the concept of stochastic processes, which are mathematical models of the random movements of stock prices and other variables. It explains how to use different types of stochastic processes, such as geometric Brownian motion, mean-reverting processes and jump processes, to describe the behavior of stock prices and interest rates. It also shows how to estimate the parameters of these processes from historical data. Some of the topics covered in this part are:
Wiener processes and Ito's lemma
The lognormal property
General Wiener processes and stochastic integrals
The Black-Scholes-Merton equation
Risk-neutral and martingale pricing
Jump processes
The volatility smile
Estimating volatilities and correlations
The Black-Scholes analysis
This part introduces the Black-Scholes analysis, which is a powerful and elegant method of pricing options and other derivatives using partial differential equations. It shows how to derive the famous Black-Scholes formula for European options, how to extend it to American options and exotic options, how to use it for hedging and delta hedging, and how to account for dividends and transaction costs. Some of the topics covered in this part are:
The Black-Scholes formula
The relationship between the Black-Scholes formula and the binomial model
Dividends
American options
Warrants and executive stock options
Employee stock options
Options on commodities, currencies, and futures
The Greeks in continuous time
Volatility smiles in continuous time
Value at risk and expected shortfall
Credit risk and credit derivatives
Exotic options: I - Barrier options, binary options, lookback options, Asian options, exchange options.
Exotic options: II - Compound options, chooser options, shout options, ladder options, rainbow options.
Options on stock indices, currencies, and futures contracts
This part introduces the concept of derivatives on derivatives, which are contracts whose payoffs depend on the values of other derivatives. It explains how to price and hedge options on stock indices, currencies, and futures contracts using the Black-Scholes analysis and other methods. It also discusses some practical issues related to these types of options, such as settlement procedures, dividends, interest rates, and exchange rates. Some of the topics covered in this part are:
Options on stock indices
Currency options
Futures options
The Black model
The Garman-Kohlhagen model
The relationship between futures prices and forward prices
The relationship between futures prices and spot prices
The relationship between futures prices and expected future spot prices
Hedging with futures options
Hedging with currency options
Hedging with index options
General approach to pricing derivatives
This part introduces the general approach to pricing derivatives, which is based on the principle of no-arbitrage. It shows how to use different methods of valuation, such as risk-neutral valuation, martingale pricing, replication arguments, change of measure techniques, and Monte Carlo simulation. It also shows how to price derivatives that depend on multiple sources of uncertainty, such as interest rates, exchange rates, stock prices, and commodity prices. Some of the topics covered in this part are:
Martingale pricing
Replicating portfolios
Change of measure techniques
Monte Carlo simulation
Options involving multiple sources of uncertainty
The Black-Scholes-Merton model revisited
The binomial model revisited
The trinomial model
The finite difference method
The implicit finite difference method
The Crank-Nicolson method
The explicit finite difference method
The stability and convergence of finite difference methods
The lattice approach to pricing derivatives
The binomial tree as a lattice
The trinomial tree as a lattice
The finite difference method as a lattice
The Monte Carlo simulation as a lattice
The management of market risk
This part introduces the concept of market risk, which is the risk of losses due to adverse movements in market prices or rates. It explains how to measure and manage market risk using different tools and techniques, such as value at risk, expected shortfall, stress testing, scenario analysis, backtesting, and delta-gamma hedging. It also discusses some regulatory and organizational aspects of market risk management. Some of the topics covered in this part are:
Value at risk and expected shortfall revisited
Linear and nonlinear derivatives
Delta-gamma hedging
Stress testing and scenario analysis
Backtesting value at risk and expected shortfall
Regulatory capital requirements for market risk
Internal models approach to market risk capital
Standardized approach to market risk capital
Market risk management in practice
Market risk management policies and procedures
Market risk management systems and software
Market risk management roles and responsibilities
Numerical procedures
This part introduces some numerical procedures that can be used to price and hedge derivatives that are not easily valued by analytical methods. It shows how to use different types of numerical methods, such as Monte Carlo simulation, finite difference methods, lattice methods, and Fourier transform methods. It also shows how to use these methods for different types of derivatives, such as path-dependent options, American options, exotic options, and interest rate derivatives. Some of the topics covered in this part are:
Variance reduction techniques
Quasi-random numbers
Low-discrepancy sequences
Antithetic variates
Control variates
Importance sampling
Stratified sampling
Path-dependent options
American options
Exotic options
Finite difference methods revisited
Lattice methods revisited
Fourier transform methods
The fast Fourier transform
The characteristic function
The Fourier inversion theorem
The Gil-Pelaez formula
The Carr-Madan formula
The Lewis formula
The Heston model
The Bates model
The jump-diffusion model
The stochastic volatility model
Interest rate derivatives and the use of Black's model
This part introduces the concept of interest rate derivatives, which are contracts whose payoffs depend on the level or movement of interest rates. It explains how to price and hedge interest rate derivatives using different models and methods, such as Black's model, the Vasicek model, the Cox-Ingersoll-Ross model, the Ho-Lee model, the Hull-White model, and the Heath-Jarrow-Morton framework. It also discusses some applications and issues related to interest rate derivatives, such as swaps, caps, floors, swaptions, collars, and convexity. Some of the topics covered in this part are:
Interest rates and interest rate futures
Black's model for interest rate futures options
The Vasicek model for interest rate dynamics
The Cox-Ingersoll-Ross model for interest rate dynamics
The Ho-Lee model for interest rate dynamics
The Hull-White model for interest rate dynamics
The Heath-Jarrow-Morton framework for interest rate dynamics
Swaps and swap valuation
Caps and floors and their valuation
Swaptions and their valuation
Collars and their valuation
Convexity and its implications for interest rate derivatives
Conclusion: Summarize the main points and benefits of the book and provide a call to action.
In conclusion, Options Futures And Other Derivatives 8th Edition Pdf Free Download is a great resource for anyone who wants to learn about derivatives markets, quantitative finance and risk management. The book covers both theoretical and practical aspects of derivatives pricing, hedging, trading and regulation. It reflects the latest developments and trends in the derivatives markets, especially after the global financial crisis of 2007-2009. It incorporates new material on credit derivatives, swaps, Greek letters, binomial trees, volatility smiles, interest rate futures and more. It provides more examples, exercises, problems and case studies to enhance the learning experience. It comes with a CD that contains useful applications and spreadsheets. It is suitable for beginners and advanced learners alike.
If you are interested in downloading the 8th edition pdf for free, you can use a reputable and trustworthy website like PDF Drive, which offers millions of books in pdf format. PDF Drive has a copy of the 8th edition of Options Futures And Other Derivatives by John C. Hull and Sankarshan Basu, which you can download for free in just a few clicks.
To download the 8th edition pdf for free from PDF Drive, follow these steps:
Click on the green button that says "Download (PDF)".
Wait for a few seconds until the download link is generated.
Click on the blue button that says "Download PDF".
That's it! You have successfully downloaded the 8th edition pdf for free from PDF Drive. You can now enjoy reading the book on your device or print it out if you prefer.
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FAQs: Answer some common questions about the book
Here are some common questions and answers about the book:
Q: Who is the book for?
A: The book is for anyone who wants to learn about derivatives markets, quantitative finance and risk management. It is suitable for students, instructors, practitioners and researchers in the fields of finance, economics, mathematics, engineering, computer science and business.
Q: What are the prerequisites for reading the book?
A: The book assumes that the reader has some basic knowledge of calculus, probability and statistics. However, the book also provides some review and explanation of these topics as needed. The book does not assume any prior knowledge of options markets and futures.
Q: How is the book different from other books on derivatives?
A: The book is different from other books on derivatives in several ways. First, it covers both theoretical and practical aspects of derivatives pricing, hedging, trading and regulation. Second, it reflects the latest developments and trends in the derivatives markets, especially after the global financial crisis of 2007-2009. Third, it incorporates new material on credit derivatives, swaps, Greek letters, binomial trees, volatility smiles, interest rate futures and more. Fourth, it provides more examples, exercises, problems and case studies to enhance the learning experience. Fifth, it comes with a CD that contains useful applications and spreadsheets.
Q: How can I get access to the solutions manual and other instructor resources?
A: If you are an instructor who wants to use the book for teaching purposes, you can request access to the solutions manual and other instructor resources from the publisher's website https://www.pearson.com/us/higher-education/program/Hull-Options-Futures-and-Other-Derivatives-8th-Edition/PGM100000.html. You will need to provide some information about yourself and your institution to verify your eligibility.
Q: How can I get in touch with the authors?
A: If you want to contact the authors for any reason, you can use their email addresses or their personal websites. John C. Hull's email address is jhull@rotman.utoronto.ca and his personal website is http://www.rotman.utoronto.ca/hull/. Sanka