Options, Futures, and
Other Derivatives, Ninth Edition
Errata in Book:
Page 13: line 1: “August 24” should
be “August 6” (This was kindly pointed out by Hendrik Hoffman)
Page 16: 2 lines from end: London Stock Exchange website
address is now www.londonstockexchange.com.
Page 21: Problem 1.25: in (a) change
“for 1.42 costs” to “for 1.52 costs” ; in (b) change
“for 1.49 costs” to “for 1.59 costs”
Page 31: line 10: Change “$1,226.90”
to “$1,426.90”. (This was kindly pointed out by Emilio Barone.)
Page 74: In the table for Problem 3.32 the dates in
the left column should be one year later (i.e., Mar. 2015, Sept. 2015, Mar
2016, and Sept 2016. (This was kindly pointed out by Wulin
Suo)
Page 130: Problem 5.26, last line:
change “the exchange rate” to “the forward exchange rate”
Page 142: line 18. Replace “3.324%”
with “3.240%”. (This was kindly pointed out by Emilio Barone.)
Page 149: Problem 6.12: line 3: change “of over 15
years” to “between 15 and 25 years”
Page 167: Line 10: Replace “1.5%” by
“3% per year”. (This was kindly pointed out by Hendrik Hoffman)
Page 167: Table 7.6. First net cash
flow should be ˗0.0500 not ˗0.0050. (This was kindly pointed out by
Emilio Barone.)
Page 196: Line 5: Replace “Likanen” with “Liikanen”. (This
was kindly pointed out by Emilio Barone.)
Page 211: In both Problem 9.3 and
Problem 9.4, delete “instead of 6%” (This was kindly pointed out by Emilio
Barone.)
Page 212: Delete Problem 9.15
Page 218: line 4: The correct website
address for the International Securities Exchange is now www.ise.com
Page 245: footnote 2: Change $10 to
$30
Page 288: 8 lines from end: in
expression for p 1.053 should be 1.0513.
Page 312: 7 lines from bottom: the
Excel instruction should be “=NORMSINV(RAND())”
Page 334: line 9: Replace “15.28”
with “15.29”
Page 337: Eight lines from end: 
is one plus the
expected percentage increase in the stock price in a risk-neutral world if
option is exercised. We could also say that 
is the expected stock
price in a risk neutral world if option is exercised. (This was kindly pointed
out by Hwa-Sung Kim)
Page 445: Problem 20.21, last line.
Replace “3-month options” with “3-month futures options” (This was kindly
pointed out by Emilio Barone.)
Page 463: Example 21.5: last line:
Change 4.202 to 4.208 and 4.212 to 4.214. (This was kindly pointed out by
Emilio Barone.)
Page 480: line 6: replace 
by 
Page 487: middle of page: replace 
by 
Page 490: Problem 21.7: line 2:
change “footnote 9” to “footnote 8”
Page 498: on line 6 replace “August
10, 2008” with “August 10, 2006” and on line 7 replace 1.8910 with 1.8918.
(This was kindly pointed out by Emilio Barone.)
Page 502: 12 lines from end: replace
“= 2.326” with “=−2.326” (This was kindly pointed out by Hendrik Hoffman)
Page 516: in equation on line 12:
change −0.05 to +0.05 on right rand side. In equation on line 14: change −3.87
to −3.88 on right hand side. Change next equation to DP = 0.05f1−3.88f2. Change 3.87 to 3.88 in
next equation and 42.99 to 43.08 in the following line.
Page 550: Table 24.3: Historical
hazard rate for Ba should be 2.17, not 2.27. (This was kindly pointed out by
Emilio Barone.)
Page 559: Change 
to 
in final two equations.
Page 560: Change to in equation 24.6.
Page 561: first equation: “0.22×0.5”
should be “0.22×0.5/2” (This was kindly pointed out by Hendrik
Hoffman)
Page 563: Example 24.6 should be
labeled Example 24.7 (This was kindly pointed out by Wulin
Suo)
Page 565: Example 24.7 should be labeled
Example 24.8 (This was kindly pointed out by Wulin Suo)
Page 566: line 2: Replace 90.91% with
89.80%. line 3 replace 0.05% with 0.10% and 0.09% with
0.13%. (This was kindly pointed out by Emilio Barone.)
Page 570: Problem 24.29: line 1:
change “Extend Example 24.5” to “Extend Example 24.6”
Page 570: Problem 24.30: line 1:
change “in Example 24.5” to “in Example 24.6”
Page 580: line 11: Change 4.1130 to
4.1150. (This was kindly pointed out by Emilio Barone.)
Page 592: 6 lines from end: “(24.10)”
should be “(24.7)”
Page 600: Line 2: change a to a1 in expression for the price
of the perpetual call so that it becomes
Page
645: line 10: change (S2d1, S2D) to (S1d1,
S2D) at end of line.
Page
683: line 9: 
should be 
Page
692: Problem 29.25, line 4: delete
“zero coupon” (This was kindly pointed
out by Emilio Barone.)
Page 707: 13 lines from end; replace
by 
. Make same change 8 lines from end of page 709 and 14 lines
from end of page 710.
Page
711: second line from end: Change y to Dy (This
was kindly pointed out by Emilio Barone.)
Page
714: line 16: The expression for b* should be
0.04+1.2×0.0072/0.21=0.082. (This was
kindly pointed out by Emilio Barone.)
Page 788: line 8: “2013” should be
“2016” (This was kindly pointed out by Hendrik Hoffman)
Errata
in Solutions Manual
Page
26: Some of the numbers are slightly
off. The par yield is 7.0741 not 7.072 and so the coupon on a par yield bond is
3.537 every six months. (This was
kindly pointed out by Emilio Barone.)
Page
39: Problem 6.2: “April 12, 2014”
should be “April 12, 2015” (This was
kindly pointed out by Emilio Barone.)
Page
109: Problem 15.17. Last sentence
should read: If S<K, d1 and d2 tend to minus infinity and N(d1) and N(d2) tend to zero. (This was kindly pointed out by Emilio
Barone.)
Page
151: line 10: Replace “equation (14.3)”
with “equation (15.3)” (This was kindly
pointed out by Emilio Barone.)
Page
166: Problem 21.19: Early exercise
feature is not considered on the tree. Correct answer is 0.062. (This was kindly pointed out by Emilio
Barone.)
Page 199: Problem 26.2: Numbers are a
little off: d1 should be ˗0.2536 and the option price should be
$61.54. (This was kindly pointed out by Emilio Barone.)
Page 203: The first two sentences of
the answer should be deleted. (This was kindly pointed out by Emilio Barone.)
Page 217: On last line replace r by rFS. (This was kindly pointed
out by Emilio Barone.)
Page 225: Problem 29.17: In (a) line
4 delete “choose the”. In (b) line 2 replace 6.71% with 6.61%. (This was kindly
pointed out by Emilio Barone.)
Page 226: Problem 29.19: last line:
replace 5.63 with 5.43. (This was kindly pointed out by Emilio Barone.)