List of Business Snapshots List of Technical Notes 1. Introduction 2. Futures markets and centralcounterparties 3. Hedging strategies usingfutures 4. Interest rates 5. Determination of forward andfutures prices 6. Interest rate futures 7. Swaps 8. Securitization and the creditcrisis of 2007 9. XVAs 10. Mechanics of options markets 11. Properties of stock options 12. Trading strategies involvingoptions 13. Binomial trees 14. Wiener processes and Itô’slemma 15. The Black—Scholes—Merton model 16. Employee stock options 17. Options on stock indices andcurrencies 18. Futures options and Black’smodel 19. The Greek letters 20. Volatility smiles 21. Basic numerical procedures 22. Value at risk and expectedshortfall 23. Estimating volatilities andcorrelations 24. Credit risk 25. Credit derivatives 26. Exotic options 27. More on models and numericalprocedures 28. Martingales and measures 29. Interest rate derivatives: Thestandard market models 30. Convexity, timing, and quantoadjustments 31. Equilibrium models of theshort rate 32. No-arbitrage models of theshort rate 33. HJM, LMM, and multiple zerocurves 34. Swaps Revisited 35. Energy and commodityderivatives 36. Real options 37. Derivatives mishaps and whatwe can learn from them Glossary of terms DerivaGem software Major exchanges trading futuresand options Tables for N (x) Author index Subject index

NEW! Available with DerivaGem 3.00 software—including to Excel applications, the Options Calculator and the Applications Builder, and a Monte Carlo simulation worksheet: o The Options Calculator consists of easy-to-use software for valuing a wide range of options. o The Applications Builder consists of a number of Excel functions from which users can build their own applications. It includes a number of sample applications and enables students to explore the properties of options and numerical procedures more easily. It also allows more interesting assignments to be designed. o The new version of the software includes a worksheet to illustrate the use of Monte Carlo simulation for valuing options. Bridges the gap between theory and practice—a best-selling college text, and considered “the bible” by practitioners, it provides the latest information in the industry, including: ·    NEW! New material on: o The industry’s use of the overnight indexed swap (OIS) rates to determine risk-free discount rates; o The new regulations for over-the-counter derivatives; o New non-technical explanation of the terms in the Black-Scholes-Merton formulas o A new chapter early in the book discussing credit risk, discount rates, and funding costs o Products such as DOOM options and CEBOs offered by CME Group o Perpetual options and other perpetual derivatives o Many new end-of-chapter problems  ·    Expanded, updated, or more complete information on: o Central clearing, margin requirements, and swap execution facilities o Credit risk and credit derivatives with the key products and key issues being introduced early in the book o One-factor equilibrium models of the term structure. Provides the right balance of mathematical sophistication—careful attention to mathematics and notation includes: ·    Nonessential mathematical material has been either eliminated or include in end-of-chapter appendices and in the technical notes on the author’s web site Concepts likely to be new to many readers have been explained carefully, and many numerical examples have been included Offers outstanding ancillaries to round out the high quality of the teaching and learning package: o Slides o Several hundred PowerPoint slides can be downloaded from Pearson's Instructor Resource Center or from the author’s website. Textbook adopters are welcome to adapt the slides to meet their own needs. o  Instructors Manual o Available online to adopting instructors by Pearson, it contains solutions to all questions (both Further Questions and Questions and Problems), notes on the teaching of each chapter, test bank questions, notes on course organization, and some relevant Excel worksheets. o Technical Notes Technical Notes elaborate on points made in the text. They are referred in the text and can be downloaded from www.pearsonglobaleditions.com/hull. Not including the Technical Notes in the book has helped to streamline the presentation of material so that it is more student friendly.

NEW! Available DerivaGem 3.00 software—including to Excel applications, the Options Calculator and the Applications Builder, and a Monte Carlo simulation worksheet: o The Options Calculator consists of easy-to-use software for valuing a wide range of options. o The Applications Builder consists of a number of Excel functions from which users can build their own applications. It includes a number of sample applications and enables students to explore the properties of options and numerical procedures more easily. It also allows more interesting assignments to be designed. o The new version of the software includes a worksheet to illustrate the use of Monte Carlo simulation for valuing options. Bridges the gap between theory and practice—a best-selling college text, and considered “the bible” by practitioners, it provides the latest information in the industry, including: ·    NEW! New material on: o The industry’s use of the overnight indexed swap (OIS) rates to determine risk-free discount rates; o The new regulations for over-the-counter derivatives; o New non-technical explanation of the terms in the Black-Scholes-Merton formulas o A new chapter early in the book discussing credit risk, discount rates, and funding costs o Products such as DOOM options and CEBOs offered by CME Group o Perpetual options and other perpetual derivatives o Many new end-of-chapter problems  ·    Expanded, updated, or more complete information on: o Central clearing, margin requirements, and swap execution facilities o Credit risk and credit derivatives with the key products and key issues being introduced early in the book o One-factor equilibrium models of the term structure.