Fundamentals of Futures and Options Markets, Global Edition, 9th edition

For courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management.

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.

This 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.

Key features

• The text covers the core material in Hull's Options, Futures, and Other Derivatives in a way that's easier for a larger audience of undergraduate students to understand.
• Streamlined material based on recent trends in the derivatives market makes the text both more appealing and logical.
• The derivatives market's move towards IOS discounting has continued since the last edition, and changes have been made to the first seven chapters to reflect this trend.
• LIBOR discounting is no longer presented as a way to value instruments such as swaps and forward rate agreements. Instead, the valuation of these instruments requires a) forward rates for the rate used to calculate payments (usually LIBOR), and b) the zero-coupon, risk-free zero curve used for discounting (usually the OIS zero curve).
• New regulations concerning the clearing and trading of OTC derivatives has been expanded on throughout the text.
• Chapter 7 on swaps has been majorly reworked to improve material presentation and reflect the derivatives market's move to OIS discounting.
• Discussion of the impact of daily settlement when futures contracts are used for hedging has been expanded.
• Details on the calculation and use of Greek letters are included.
• Discussion of the expected shortfall measure reflects its increasing importance in the field.
• End of Chapter Problems include seven quiz questions, which students can use to test their understanding of key concepts. Students can check their answers at the end of the book.
• Practice Questions appear throughout the text to enhance student retention.

New to this Edition

Information Throughout Has Been Brought Up-to-date

• NEW! New regulations concerning the clearing and trading of OTC derivatives has been expanded on throughout the text.
• REVISED! Chapter 7 on swaps has been majorly reworked to improve material presentation and reflect the derivatives market’s move to OIS discounting.
• UPDATED! Discussion of the impact of daily settlement when futures contracts are used for hedging has been expanded.
• UPDATED! Details on the calculation and use of Greek letters are included.
• UPDATED! Discussion of the expected shortfall measure reflects its increasing importance in the field.

• End of Chapter Problems include seven quiz questions, which students can use to test their understanding of key concepts. Students can check their answers at the end of the book.
• Practice Questions appear throughout the text to enhance student retention.

• NEW! DerivaGem Fundamentals 4.0 includes two excel applications, the Options Calculator and Applications Builder. The first consists of easy-to-use software for valuing many of the derivatives discussed in this book, and the second includes a number of excel functions from which users can build their own applications.