Required Text Materials in Finance 4366

The required textbook for the Options, Futures, and Other Derivatives (Finance 4366) course at Baylor University (coincidentally) shares the same title as the course. Authored by University of Toronto finance professor John Hull, the “Options, Futures and Other Derivatives” textbook is now in its 10th edition, and it is quite expensive; on Amazon, it costs around $290 to purchase, and around $125 to rent.

An important marketing “scheme” (or less charitably, “scam”) in the world of textbook publishing involves frequently publishing “new” editions of textbooks. Often, new editions are not all that different from earlier editions. This is certainly the case with Hull’s textbook. For example, I found that by comparing chapter titles and numbers in tables of contents for the 9th and 10th editions, that the 10th edition has a new ninth chapter that I would not cover anyway; also, two chapter titles were slightly renamed but chapter contents in both cases remain completely unchanged. Compared with the 10th edition, the 9th edition is a “steal” on Amazon – new copies of the 9th edition are less than half the cost of new copies of the 10th edition.

Although I list the 10th (US) edition as “required” for Finance 4366 in the course syllabus, you are welcome to rely upon earlier (and considerably less expensive) editions of this book; e.g., the 6th, 7th, 8th, and 9th (US and international) editions are completely acceptable substitutes, since the chapters that we cover in Finance 4366 are virtually identical across the 6th through 10th editions. For example, if you go to http://www.ebay.com/bhp/options-futures-and-other-derivatives, you will find an array of various editions of Hull’s textbooks available for less than $30 (make sure you are buying the textbook, not the solutions manual). You may be able to find even better deals elsewhere; just make sure that the book author (John C. Hull) and title (Options, Futures, and Other Derivatives) are the same, and that the edition of the book is no earlier than the 6th edition.

Finally, don’t worry about whether the book you buy has the CD; the software on the CD (called “Derivagem”) is a rather simple Excel spreadsheet that you can download directly from Hull”‘s website at the following address: http://www.rotman.utoronto.ca/~hull/software/DG200.01.xls.

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