This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States. For courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management. An Easily Understandable Introduction to Futures and Options Markets Fundamentals of Futures and Options Markets covers much of the same material as Hull’s acclaimed title, Options, Futures, and Other Derivatives. However, this text simplifies the language for a less mathematically sophisticated audience. Omitting calculus completely, the book is suitable for any graduate or undergraduate course in business, economics, and other faculties. The Ninth Edition, Global Edition, has a flexible structure that can be used for any course length. Instructors can choose to cover only the first 12 chapters, finishing with binomial trees, or to cover chapters 13-25 in a variety of different sequences. Each chapter from 18 onwards can be taught independently as its own unit. No matter how you elect to divide the material, Fundamentals of Futures and Options Markets offers a wide audience a sound and easy-to-grasp introduction into financial mathematics.

Table of Contents

Chapter 1: Introduction

Chapter 2: Futures Markets and Central Counterparties

Chapter 3: Hedging Strategies Using Futures

Chapter 4: Interest Rates

Chapter 5: Determination of Forward and Futures Prices

Chapter 6: Interest Rates 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: Employee Stock Options

Chapter 15: Options on Stock Indices and Currencies

Chapter 16: Futures Options and Black's Model

Chapter 17: The Greek letters

Chapter 18: Binomial Trees in Practice

Chapter 19: Volatility Smiles

Chapter 20: Value at Risk and Expected Shortfall

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 l earn from Them

Answers to Quiz Questions

About the Author

John C. Hull is a Professor of Derivatives and Risk Management at the Rotman School of Management at the University of Toronto.

He is a respected researcher in the academic field of quantitative finance (see for example the Hull-White model) and is the author of two books on financial derivatives that are widely used texts for market practitioners: "Options, Futures, and Other Derivatives" and "Fundamentals of Futures and Options Markets".

Hull is an editor of the Journal of Derivatives (since 1993), The Review of Derivatives Research (since 1993), the Journal of Derivatives Use, Trading & Regulation (since 1994), the Canadian Journal of Administrative Studies (since 1996), the Journal of Risk (since 1998), the Journal of Bond Trading and Management (since 2001), the Journal of Derivatives Accounting (since 2002) and the Journal of Credit Risk (since 2004).

He studied Mathematics at Cambridge University (B.A. & M.A.), and holds an M.A. in Operational Research from Lancaster University and a Ph.D. in Finance from Cranfield University. In 1999, he was awarded the Financial Engineer of the Year Award, by the International Association of Financial Engineers. He has twin sons named Peter and David, and a wife named Michelle.