Wednesday, May 28, 2008 

Options, Futures and Other Derivatives (6th Edition)

Designed to bridge the gap between theory and practice, this successful book is regarded as "the bible" in trading rooms throughout the world. The books covers both derivatives markets and risk management, including credit risk and credit derivatives; forward, futures, and swaps; insurance, weather, and energy derivatives; and more. For options traders, options analysts, risk managers, swaps traders, financial engineers, and corporate treasurers.


Customer Review: Great intro
I started not knowing a "put" from a "call," but I needed to know a fair bit about how financial engineers (coming from a family of PEs, I'm still not used to that term) use math. This has been the introduction I wanted - not the advanced stuff, but enough to help me understand that material. Methodical pacing leads the reader gradually through the basics, from just what a derivative is on through the brief story of how futures markets work - in short, they abstract buying and selling into buying and selling the right to buy and sell. I tend towards the concrete, so many of these transactions seemed a bit airy to me. Oh, I can follow the reasoning well enough, but I just never saw where the satisfaction of the thing solid and completed comes in. As it turns out, it doesn't. Once you've really got that in the pit of your stomach, then Hull's presentation follows smoothly. He gradually derives models of increasing complexity. Diligent reader with a little calculus or a lot of trust will follow along easily. Later chapters draw on more advanced concepts in probabilistic modeling, but present the reader with only the aspects needed for the discussion at hand - a mercy, considering the size of the specialized vocabulary involved in the rest of the explanation. This book ends when the foundation has been built. More advanced needs must be met with other sources - not a problem with this text, just a matter of its chosen scope. I needed that foundation, however, so I recommend this book to anyone with reasonaable math skills and a need to know the material. -- wiredweird, reviewing the 6th edition
Customer Review: Excellent book for beginners in financial engineering
I started a course in Financial Engineering last year and this book has given me all the grounding I need. Pros: * Very in-depth treatment of derivative basics, e.g. call, puts, swaps, forwards, futures. * Many, many examples to complement the material. * Many good practice problems to help further your understanding. * Covers binomial, Monte Carlo and Black Scholes pricing of options very well * Industry standard textbook - all the professionals use it. I can't think of many negatives for the book. So if you're a student of finance, go get this book!


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JUGS Bulk Box of 100 Bulldog Poly Baseballs




It's easy to think of catchers as the samurai of baseball.

They don armor before going into combat and they withstand a pummeling by opponent after opponent, without expressing a hint of discomfort.

And they are constantly WATCHING, whether it is a slight change in the orientation of their pitcher's throwing arm or the warm-up swings of an unknown adversary in the on deck circle.

They strategize, incessantly, and with every pitch and nuance they detect, their game plans adjust.

Managers should emulate catchers, if only because catchers, as a general rule, become great managers.

In 2007, the two gentlemen voted Managers of the Year by Major League baseball, had been catchers in their playing days. They didn't post remarkable batting averages. In fact, their career averages were about .237, which isn't very good, at all.

But they, like most catchers, were adroit students of the game.

The man who took over for departing Yankee manager Joe Torre, Joe Girardi, was a catcher.

So was Joe Torre, as I recall.

Why do catchers make such fine managers? Five reasons:

(1) They take total responsibility for the game, suggesting pitches to pitchers, those that are most calculated to retire hitters. They even position fielders, because they sense where the ball is most likely to be hit.

(2) They're good communicators, especially under pressure. It is often the catcher who calms his erratic or fading pitchers by calling for a quick conference on the mound. Knowing when to call the time out, and what to say during it, are really important skills. Corporate managers who know when to give their people an impromptu break, or who sense when something subtle is askew, are some of the most effective mentors.

(3) Constantly, they see the big picture. Only catchers can eyeball every other player on the field, simultaneously.

(4) Their heads are always in the game because they're part of every play. They're alert and always vigilant.

(5) They're tough. Leadership comes easily to them because the buck stops at home plate. If another team wants to score, first, its players have to get past THEM.

I don't know what my manager saw in me, but in Little League, he converted me from being an infielder to a catcher. Possibly, more than anything else, the training and experience I got, then and at higher levels of baseball, enabled me to become and effective corporate manager and independent consultant.

It may be too late for you to change your Little League position, but it's never too late to study catchers and the managers they become, and above all, to learn to think as they do.

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Dr. Gary S. Goodman is a top trainer, conference and convention speaker, and sales, customer service, and negotiation consultant. A frequent expert commentator on radio and TV, he is also the best-selling author of 12 books, more than 1,000 articles and several popular audio and video programs. His seminars are sponsored internationally and he is a faculty member at more than 40 universities, including UC Berkeley and UCLA. Gary's sales, management and consulting experience is combined with impressive academic credentials: A Ph.D. from USC, an MBA from the Peter F. Drucker School of Management, and a J.D. degree from Loyola Law School, his clients include several Fortune 1000 companies.

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