John Hull's text or Wilmot's text?

Discussion in 'Options' started by rselitetrader, Apr 1, 2007.

  1. Hello elite option traders:

    I am looking for some "authoritative" textbooks on options. I have read most of the threads on book recommendations on this forum, but few have recommended Wilmot's. Here I have included the links to Amazon.com. Can anyone give me an opinion on John Hull's book or Wilmot's book? Or what textbooks some of the top business schools use (e.g., Harvard, Sloan, Wharton, etc.)?

    Thanks!

    Paul Wilmott on Quantitative Finance 3 Volume Set (2nd Edition) (Hardcover)
    by Paul Wilmott (Author)

    http://www.amazon.com/Paul-Wilmott-...7211132?ie=UTF8&s=books&qid=1175439157&sr=8-1

    Options, Futures and Other Derivatives (6th Edition) (Hardcover)
    by John C. Hull (Author)


    http://www.amazon.com/Options-Futur...3039210-7211132?ie=UTF8&qid=1175439157&sr=8-1
     
  2. What do you mean by "authoritative"?

    Wilmott books are generally more mathematical (probably more aimed at quants) and you'll find more formulas etc. in them. I don't have any of his books, probably because i was never convinced they're as good as some might think. Wilmott himself is more of a product..Wilmott website, courses, magazine, etc..

    I have Hull and it's a book everyone in financial markets should have and they probably do. it covers all relevant topics in a manual form and is very accessible. Student's use it, professors teach from it, professionals also use it. nice neat book. Obviously it doesn't cover everything in too much details - which is not its aim. all round a good book that I have learned alot from.

    I still don't know what you mean by "authoritative", but in any case, I personally think if you're just interested in options, niether of these books are worth buying. The following are also two books I like.

    Nefci

    Baxter & Rennie
     
  3. exactly, what kind of book are you looking for? I gather you wish to understand the principles and maths behind option pricing?

    This is one is from Wharton, and is a very good text:
    http://www.amazon.com/Stochastic-Ca...0531344?ie=UTF8&s=books&qid=1175443730&sr=1-2

    Hull's book is simplistic but is a good basic intro to Financial Instruments.

    I dont like Wilmott's books (apart from the intro book with DeWynne and Howison), but that is my opinion.

    You're probably better off starting with Hull and progressing to Steve Shreve's books.
     
  4. Robert McDonald's book blows Hull away
     
  5. Thank you all for your replies. What I am looking for, and what I mean by "authoritative," is a good textbook having understood which one would have the solid knowledge to understand a variety of literature in quantitative finance; the root from which all branches grow. From a practical point of view, be more successful in trading; from personal point of view, enjoy the math and the proofs. Back in school, I tremendously enjoyed math and physics, and now I only regret I didn't have time or the awareness to take any quant. finance courses. Now I need to make it up, for my own sake; a personal challenge.
     
  6. I was in a quant program and we used Hull’s 6th Edition.

    I give it the annaland-two-thumbs-up :)