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, the 10th edition has a new ninth chapter that I would not cover anyway; furthermore, two chapter titles were slightly renamed but chapter contents in both cases remain completely unchanged.

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 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 7th 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 priced at a small fraction of what Amazon charges (make sure you are buying the textbook, not the solutions manual). Perhaps 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 7th 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 which you can download directly from Hull”‘s website at the following address: http://www.rotman.utoronto.ca/~hull/software/DG200.01.xls.

]]>So here are my suggestions for Khan Academy videos which cover these topics (unless otherwise noted, all sections included in the links which follow are recommended):

- Calculus: Taking derivatives, Optimization with calculus, Visualizing Taylor Series for e^x
- Probability and statistics: Basic probability, Compound, independent events, Permutations, Combinations, probability using combinatorics, Random variables and probability distributions, Binomial distribution, Law of Large Numbers, and Introduction to the Normal Distribution.

Finally, if your algebra is a bit rusty, I would also recommend checking out the Khan Academy’s review of algebra.

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