Fundamentals of Futures and Options Markets, Fifth Edition
The following typos
and other errors are in the first printing of the book and Solutions
Manual/Study Guide. We have tried to correct them in subsequent printings and
so they may not be present in the copy you have.
Book Errata
Page 6: 7 lines from bottom of text: Replace one July
call by one October call (This was kindly pointed out by Brian Tims)
Page 7: On first
line of the title to Figure 1.3 delete “per share” (This was kindly pointed out
by Justin Schmidt)
Page 17: last line:
change long to short in Problem 1.14. (This is for consistency with the
Solutions Manual)
Page 18: Assignment
Question 1.27, line 2: change 200 to 20
Page 34: line 7 of
second paragraph: Change February 4, 2004 ot February
3, 2004. (This was kindly pointed out by Emilio Barone.)
Page 39: In fourth
line of paragraph beginning This example is shown….
150 cents should be 250 cents. (This was kindly pointed out by Ann Marie
Hibbert)
Page 52: line 3 of
text: Replace Table 3.1 by Trading Note 3.1 (This was kindly pointed out by
Page 56:Trading Note 3.3: last line: June should be July (This was
kindly pointed out by
Page
66: Table 3.4 Change Gain on futures position ($000) to Gain on futures
position.
(This was kindly pointed out by Emilio Barone.)
Page 67: line 1:
equation (3.2) should be equation (3.4)
Page 75 line 7:
Delete: and explain day count conventions. Day count conventions are covered in
Chapter 6, not Chapter 4)
Page
88, in equation on line 3 replace 4.0 by 0.04, 4.5 by 0.045, and -$125,000 by
-$1,250. Also on next few lines 125,000 should be replaced by 1,250 in
twoplaces and 123,609 should be replaced by 1,236.09 in two places. (This was
kindly pointed out by
Page 88: Change
sentence after equation (4.9) to: Similarly, the value of an FRA promising that
RK will be paid on a
principal of L between times T1 and T2 is
(This was kindly pointed out by John Elder.)
Page 92: Problem
4.13: Change (months) to (years) (This was kindly pointed out by Emilio
Barone.)
Page 103: Delete
first on lines 9 and 11. On line 13 change end of the year to end of nine
months. (This was kindly pointed out by Emilio Barone.)
Page 104: Table
5.3: line 3: $39.40 should be $39.60. (This was kindly pointed out by
Page 105: Fifth
line of example: Replace equation (5.3) by equation (4.3) (This was kindly
pointed out by Gregory Battle)
Page 117: Half way
down: Change July 17, 2003 to February 4, 2004. 7 lines from the bottom change an requires to and requires. (This was kindly pointed out by
Emilio Barone.)
Page 120: Change
(2.1) to (5.20) on lines 3 and 8
Page
162: Line 21: LIBOR + 0.7% should be LIBOR + 0.07%. Also in the fourth line of
Section 7.5 “Section 7.3” should be “Table 7.3” (This was kindly pointed out by Igor Pouchkarev)
Page 165: line 12:
Change is worth par… to is worth the par value, L, ….(This was kindly pointed out by
Emilio Barone.)
Page 167: Under
table on lines 2, 3, and 11 change 10 to 100. On line 16 change -1.4067 to -1.407. (This was kindly pointed
out by Emilio Barone.)
Page 173: lines 12
and 14: 9.5439 should be 9.6439 (This was kindly pointed out by Robert Stark)
Page 174: line 8.
Change 0.6 to 0.8
Page 196: In
Example line 3 change the strike price from $60 to $66. (This was kindly
pointed out by Emilio Barone.)
Page 202: Quiz 8.3:
Change: and writes…. To: and buys…(This was kindly
pointed out by Emilio Barone.)
Page 208: line 3:
should read: ..effect is to increase the value of call
options and decrease the value of put options.. (This was kindly pointed out by
Page 221: Stoll
reference should be Journal of Finance,
24 (Dec 1969), 801-24. (This was kindly pointed out by David Langevin)
Page 230: Table 10.2: Last line under Payoff from short
put option should be ST – K1 (This
was kindly pointed out by
Page 231: Table
10.1: Insert European after month in title. Also call option prices when strike
is 55 should be 0.96 not 0.76 in table. (This was kindly pointed out by
Page 232: Business
Snapshot 10.1. End of Second Paragraph:change e0.08×2/12
to e-0.08×2/12 (This was kindly pointed out by Emilio
Barone.)
Page 239: 14 lines
from bottom, put (call) should be call (put). (This was kindly pointed out by
Young-jin An.)
Page 251: 3 lines
from bottom: equation (11.8) should be equation (11.10)
Page 256: 6 lines
from bottom: equations (11.9) to (11.12) should be equations (11.11) to (11.14)
Page 262: Problem
11.19: line 4 two months should be four months
Page 268 Business
Snapshot 12.1: change 1.0124 to 1.124 on line 14. (This was kindly pointed
out by
Page 272: 6 lines
from bottom: change $40 to $4. (This was kindly pointed out by
Page 293: In
Portfolio insurance section change S=1000
to S0=1000. (This was
kindly pointed out by Emilio Barone.)
Page 309: line 3:
Change American futures to American futures options. (This was kindly pointed
out by Emilio Barone.)
Page 344: In
further reading change Taleeb to Taleb. (This was kindly pointed out by Emilio
Barone.)
Page 351: line 8:
Change …(11.9) to (11.12)… to ….(11.11) to (11.14)….
(This was kindly pointed out by Emilio Barone.)
Page 361: line 189
should read: Suppose that 
is the value of S*….(This
was kindly pointed out by Emilio Barone.)
Page 388 and 389:
In the tables change Market variable N
to Market variable n (This was kindly
pointed out by Emilio Barone.)
Page 442: Business
Snapshot 20.3: Change 200 to 2009 in Equity payment dates (This was kindly
pointed out by Emilio Barone.)
Page 443: 3 lines
from bottom: Change swap to swap option. (This was kindly pointed out by Emilio
Barone.)
Page 447: Problem
20.11. Change t to T in four places. (This was kindly pointed
out by Emilio Barone.)
Page 454: line 13:
Change to From Tables 21.3 and 21.5…Line 15: change to From Table 21.4, ….(This was kindly pointed out by Emilio Barone.)
Page 491: Last
line: Change LIBOR rate for that maturity to LIBOR par yield for that maturity (This was
kindly pointed out by Emilio Barone.)
Page
527: 6 lines from bottom; Change Normal American to Lognormal European. (This was kindly pointed out by Emilio
Barone.)
Solutions Manual/Study Guide Errata
Page 19, Problem 4.14: Discounting
should be at the three-year rate of 3.7%. The correct answer is $2,078.85.
(This was
kindly pointed out by
Page 21,Problem 5.13: Change six months to three months on the last
line (This was kindly pointed out by
Page 50, Problem
9.11,line 5: change 65-5=$60 to 64–5=$59. On the next line 59.21 should be
58.21 (This was kindly pointed out by
Page 85, Problem
14.18, second equation should be 30e-0.05×3/12–28=1.63.On the next
line –1.63 should be 1.63 and the final range should be 1.65 < P < 2.37 (This was kindly pointed out
by Asher Lai.