Options,
Futures, and
Other Derivatives, Eighth Edition
The following typos and other errors are in the first printings of the
book. We have tried to correct them in subsequent printings and so they may not
be present in the copy you have.
Errata
in Book:
Page 8:
line 14: Change “497.02” to “497.07” (This
was kindly pointed out by Emilio Barone)
Page
11: Business Snapshot 1.2. Line 6. Delete “that no short
positions be taken,”. (This was kindly pointed out by
Denis Openlander)
Page
20: Problem 1.32: Change “July 15, 2010” to “June 15,
2010” (This was kindly pointed out by Emilio Barone)
Page
33: Line 5 of Section 2.6. Delete “the exchange that
the contract is trading on,” (This was kindly pointed out by Emilio Barone)
Page
35: Line 8: Change “March 26, 2010” to “May 26, 2010”
(This was kindly pointed out by Emilio Barone)
Page
107: Footnote 3: Line 3: Change “gold” to “the asset” (This was kindly
pointed out by Sam Wong)
Page
112: Line 2: Change “appendix” to “technical note” (This
was kindly pointed out by Emilio Barone)
Page
116: Example 5.7: Line 3: Change “increasing” to
“decreasing” (This was kindly pointed out by Emilio Barone)
Page
117: Table 5.4: line 4, Change $62,500 to £62,500
(This was kindly pointed out by Emilio Barone)
Page
139: Line 10: “August 4, 2009” should be “May 26, 2010”
(This was kindly pointed out by Sam Wong)
Page
148: Line 12: Change “March 1, 2012 to March 1, 2013”
(This was kindly pointed out by Hendrik Hoffman)
Page
192: Six lines above Further Reading heading, change
“less than” to “greater than” (This was kindly pointed out by Edwin van Norden)
Page
233: Problem 10.27a. Change “Analytic:European” to “Black-Scholes:European”
Page
234: Line7: Change “stock indices” to “options on stock
indices” (This was kindly pointed out by Emilio Barone)
Page
275: Problem 12.18, Change Problem 11.17 to Problem
12.17
Page
278: Fourth equation from end: replace “U2=” by “U1=” on the left hand side. (This was kindly pointed out
by Wulin Suo)
Page
298: equation (13A.10): Change 
to 
in last term (This was
kindly pointed out by Emilio Barone)
Page
298: equation (13A.11): Delete the first summation sign
and change 
to 
in last term. (This was kindly pointed out by Wulin Suo and Emilio Barone)
Page
356: line 2: replace “foreign exchange rates” with”
forward exchange rates” (This was kindly pointed out by Wulin
Suo)
Page
429: Two lines below equation (20.7): replace
“Section 12.9 and 12.11” with “Section 12.8 and 12.11” (This was kindly pointed
out by Emilio Barone)
Page
436: Two lines above Figure 20.6: Replace 20.16 with
19.16. (This was kindly pointed out by Wulin Suo)
Page
443: line 4: replace “rho” with “theta” (This was kindly
pointed out by Emilio Barone)
Page
452: In Title to Table 20.3 replace “Figure 19.3” with
“Figure 20.3” (This was kindly pointed out by Wulin Suo)
Page
475: Table 21.1. Remove dollar signs from second column
of table
Page
477: second equation: “12,224.10” should be “12,244.10”.
Table 21.4: “205.256” should be “202.256”. (This was kindly pointed out by
Emilio Barone)
Page
483: 6th line below table: Change “standard
deviation” to “variance” (This was kindly pointed out by Hendrik Hoffman)
Page
497: Problem 21.22. Change “Section 20.2” to “Section
21.2”
Page
506: Change 0.000001366 to 0.0000013465 in equations
which are 2 lines and 7 lines under the table (This was kindly pointed out by
Hendrik Hoffman)
Page
559: Title for Section 24.8 should be COLLATERALIZED
DEBT OBLIGATIONS (This was kindly pointed out by Emilio Barone)
Page
561: In paragraph beginning “In Section 24.3..” the penultimate sentence should begin “The six standard
tranches of iTraxx Europe..” and the final sentence
should begin “The six standard tranches of CDX IG..” (This was kindly pointed
out by Paul Whooley)
Page
563: After equation (24.7) add: where n is the number of reference entities.
Also on line 8 replace “Section 22.9” with “Section 23.9.” (This was kindly
pointed out by Wulin Suo)
Page
566: line 1: change “Section 24.5” to “Section 24.6”
(This was kindly pointed out by Emilio Barone)
Page
577: End of first paragraph of Section 25.5 Replace
“Section 25.2” with “Section 25.4” (This was kindly pointed out by Wulin Suo)
Page
581: last line of footnotes: replace “1977” with “1997”
(This was kindly pointed out by Emilio Barone)
Page
585: Three lines from end: Replace “equation (16.9)”
with “equation (17.9)” (This was kindly pointed out by Wulin
Suo)
Page
597: Problem 25.27. Change “Section 25.15” to “Section
25.16” in two places. Also in Problem 25.29 change ‘appendix” to “Technical
Note 27”
Page
602: Third equation: Delete “=0.3679” on right hand
side. (This was kindly pointed out by Wulin Suo)
Page
613: 15 lines from bottom: “Example 25.2” should be
“Example 25.3” (This was kindly pointed out by Carlos Heitor
Campani)
Page
615: line 5: “Example 25.2” should be “Example 25.3”
(This was kindly pointed out by Carlos Heitor Campani)
Page
620: Last line of “Using a Nonrectangular Tree”
section: change Section 19.4 to Section 20.4. (This was kindly pointed out by Wulin Suo)
Page
626: Page numbers for Madan, Carr,
Chang reference should be 79-105 (This was kindly
pointed out by Emilio Barone)
Page
632: Eight lines from end: change “equation (27.8)” to
“equation (27.7)”. (This was kindly pointed out by Wulin
Suo)
Page
637: Three lines below equation (27.19): delete the word
“expected” (This was kindly pointed out by Wulin Suo)
Page
644: Line 1: Replace “Problem 27.14” with “Problem
27.13”
Page
646: Problem 27.13. line
4. Change “ln f and ln g” to “ln g and ln h”.
Page
675: Example 29.4., On line 8 of this example “Eg(VT)” should be “EY(VT)” and “sF” should
be “sV”. (This was kindly
pointed out by Gary Wu.)
Page
685: In equation (30.9) replace 
by 
Page
687: dt’s are missing from two
equations that are 8 and 9 lines from the bottom. They should both read “dP(t,T) = r(t)P(t,T)dt
−….” not “dP(t,T) = r(t)P(t,T) −….” (This was kindly pointed out by Patrick Brewer.)
Page
687: The equation for 
half way down the page
should have a minus sign in front of 
in two places. (This was kindly
pointed out by Emilio Barone)
Page
714: Line 3: Replace “Chapter 18’ with “Chapter 19”
Page
736: Four lines from end: replace “Section 7.8”
with “Section 7.9” (This was kindly pointed out by Emilio Barone)
Page
737: line 2: replace “Section 7.9” with “Section 7.10”
Page
771: first equation: Last term on left hand side should
be 8e−0.1×3 (This was kindly pointed out by Carlos Heitor Campani)
Page
812 (page 818 in Global Edition): Item 5, line 1.
Change “There are six..” to “There are seven..” (This
was kindly pointed out by Hendrik Hoffman)
Errata in Student Solutions Manual
Page 8: 9 lines from bottom: “0.118” should
be “0.0118” (This was kindly pointed out by Paolo Brandimarte)
Page 78: 4th row of table:
“23.40” should be “23.14” (This was
kindly pointed out by Emilio Barone)
Page
105: Last line of Problem 14.22 (just before final
equation) replace “t” by “zero” (This
was kindly pointed out by Louis Florence)
Page
111: Caption to Figure S16.1. “put”
should be “call” in three places. (This was kindly pointed out by Sam Wong)
Page
121: Problem 17.12: Replace expressions for u and d by 
=1.1618; d = 1/u = 0.8607. (This was kindly pointed out
by Maksim Sokolov)
Page
122: The wrong diagram was inserted as Figure S17.2 for Problem 17.13.
However, the answer in the text is correct. The European put is worth the same
as the European call and the American put is worth the same as the American
call. (This was kindly pointed out by Maksim Sokolov)
Page
188: Problem 24.21. Change M to F everywhere. Also
reference to equation (24.2) should be (24.5). (This was kindly pointed out by
Emilio Barone.)
Page
188: Problem 24.21. In last line 0.79851 should be
0.079851. (This was kindly pointed out by Aaron Armstrong)
Page 213: In the last equation sSsP should be
multiplied by rSP where rSP is the correlation between S and P. (This was kindly pointed out by Kelvin Tong)