Help: Book on Derivatives for undergraduates??

[Pol]

Hi everyone,

I would like some help from the experts in books! I am professionally a govies trader, nothing very quantitative, and last year I started teaching derivatives to undergraduates. I had too short time to prepare my first year so, since I had the idea that the Hull was the bible for derivatives, I just used it as the compulsory guide.

The thing is that for next year I am looking for an alternative that is more simple, better structured, more linked to real financial markets and, if possible, more based on European conventions since I am teaching there.

Can anyone help out? Many thanks in advance!!!

Pablo

 

[Daniel Duffy]

Paul Wilmott on Quantitative Finance, Volumes 1-3
John Hull
Brigo/Mercurio (for fixed income). super book IMO

 

[Ken Abbott]

Figlewski's "Options, Futures and Other Derivatives" providers a superb explanation of option pricing in intuitive terms.

 

[pingu]

Paul Wilmott on Quantitative Finance, Volumes 1-3
John Hull
Brigo/Mercurio (for fixed income). super book IMO

these are not good for the average undergraduate.

 

[Chris D.]

Hull's "Fundamentals of Futures and Options Markets" is "Options, Futures, and Other Derivatives" without the advanced math. I think the former is marketed to undergraduates

 

[Daniel Duffy]

these are not good for the average undergraduate.

Maybe not.

Should undergrads study derivatives?

 

[C S]

I thought Bodie-Kane-Marcus (MBA book on Investments) was a fairly comfortable read for an advanced undergrad. The derivatives material is limited but is a good introduction and the authors are very practically-oriented. It should be a good base to develop further readings off of.

 

[Zhenghao Li]

Options, Futures and Other Derivatives, it's the so-called "bible".

 

[Polter]

Baxter & Rennie is quite accessible.

 

[Daniel Duffy]

For hands-0n and a way to learn VBA this is very good

http://www.amazon.com/Complete-Guide-Option-Pricing-Formulas/dp/0071389970/ref=asap_bc?ie=UTF8

 

[yetanotherquant]

Introduction to Mathematical Finance: Discrete Time Models by Stanley R. Pliska
(I learnt my Financial Math I with it).

As to Baxter & Rennie, IMO too superficial.

 

[IntoDarkness]

Baxter book is garbage. The math is wrong and no intuition development

 

[bigbadwolf]

Baxter book is garbage. The math is wrong and no intuition development

Seconded. Baxter and Rennie is garbage.

 

[Alexandre Chretien]

these are not good for the average undergraduate.

Hull is the easiest thing to read...

 

[Pol]

Figlewski's "Options, Futures and Other Derivatives" providers a superb explanation of option pricing in intuitive terms.

This link above on the Figlewski book takes me to the title "Financial Options: From Theory to Practice"... Is it that one or the one you write (Options, Futures an other Derivatives)

 

[Pol]

Many thanks to everyone for the recommendations. The thing is that my approach to the subject wants to be as practical as it could since I am not a quant, just a govies trader with BBA background. Where I can add more value to the kids is showing them stuff from real markets, bloomberg, news,... but of course I would like to teach them the key concepts, so I am looking for a textbook that, let's say, shows in an intuitive way these key concepts, starting from forwards and futures (most of the books focus more on options, but for this level, undergraduates, I think it is good to focus even more on futures and forwards). Let say that my ideal textbook would need to be written by someone who really trades in the markets.

Does anyone know "Financial Derivatives" by Kolb?

 

[Daniel Duffy]

Let say that my ideal textbook would need to be written by someone who really trades in the markets.

Are you not getting ahead of yourself? Not sure if this is pedagogically good at undergrad level.