An Introduction to Derivative Securities, Financial Markets

This is a superb book for many reasons but the most important one is it makes you think properly about derivatives and financial markets. Since hulls book is considered as the Bible In many business School, I would like to mention some characteristics that you have here and not in hulls book, of course in my opinion: 1. The book is Conciseness being thick), gives lots of examples, including case studies and industry examples. 2. Covers firstly equity derivatives and then moves into interest rate derivatives (Ham), and who else to teach the hjm model better than its creator Prof. Jarrow. 3. The book covers the usage of models. We all know that BS is strongly rejected by market data, why do we still use it, then. In hulls it says, well because thats what practice does. First time I read it from Hull, it didnt make sense to me. In this book It covers why the model can still be applied and in what cases (used as a statistical model), but dont hedge with it in the normal sense, since the theoretical model was rejected by market data. 4. Market manipulation is covered and what to do with the models if you believe market manipulation is present and how to see that 5. Price bubbles. Prof. Jarrow has been doing research in the last 10 years about price bubbles and he talks about the validity and usage of models when you can see price bubbles in the market (see = Advanced statistical tools of Checking market assumptions) overall, I am very happy with this book, and I am glad I bought and its on My Book shelf.