Options, Futures, and
Other Derivatives, GLOBAL Ninth Edition
Errata
in Book:
Page 35:
line 1: “August 24” should be “August 6” (This
was kindly pointed out by Hendrik Hoffman)
Page 38: 2 lines from end: London Stock Exchange website address is now
www.londonstockexchange.com.
Page 43:
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 53:
line 10: Change “$1,226.90” to “$1,426.90”. (This
was kindly pointed out by Emilio Barone.)
Page 96: 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
152: Problem 5.26, last line: change “the exchange
rate” to “the forward exchange rate”
Page
164: line 18. Replace “3.324%” with “3.240%”. (This
was kindly pointed out by Emilio Barone.)
Page
171: Problem 6.12: line 3: change “of over 15 years” to
“between 15 and 25 years”
Page
189: Line 10: Replace “1.5%” by “3% per year”. (This was
kindly pointed out by Hendrik Hoffman)
Page
189: Table 7.6. First net cash flow should be ˗0.0500
not ˗0.0050. (This was kindly pointed out by Emilio Barone.)
Page
218: Line 5: Replace “Likanen”
with “Liikanen”. (This was kindly pointed out by
Emilio Barone.)
Page
233: In both Problem 9.3 and Problem 9.4, delete
“instead of 6%” (This was kindly pointed out by Emilio Barone.)
Page
234: Delete Problem 9.15
Page
240: line 4: The correct website address for the
International Securities Exchange is now www.ise.com
Page
277: footnote 2: Change $10 to $30
Page
310: 8 lines from end: in expression for p 1.053 should
be 1.0513.
Page
334: 7 lines from bottom: the Excel instruction should
be “=NORMSINV(RAND())”
Page
356: line 9: Replace “15.28” with “15.29”
Page
359: 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
467: Problem 20.21, last line. Replace “3-month options”
with “3-month futures options” (This was kindly pointed out by Emilio Barone.)
Page
485: 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
502: line 6: replace 
by 
Page
509: middle of page: replace 
by 
Page
512: Problem 21.7: line 2: change “footnote 9” to
“footnote 8”
Page
520: 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
524: 12 lines from end: replace “= 2.326” with “=−2.326”
(This was kindly pointed out by Hendrik Hoffman)
Page
538: 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
572: Table 24.3: Historical hazard rate for Ba should be
2.17, not 2.27. (This was kindly pointed out by Emilio Barone.)
Page
581: Change 
to 
in final two equations.
Page
582: Change to in equation 24.6.
Page
583: first equation: “0.22×0.5” should be
“0.22×0.5/2” (This was kindly pointed out by Hendrik Hoffman)
Page
585: Example 24.6 should be labeled Example 24.7
(This was kindly pointed out by Wulin Suo)
Page
587: Example 24.7 should be labeled Example 24.8 (This
was kindly pointed out by Wulin Suo)
Page 588:
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 592:
Problem 24.29: line 1: change “Extend Example 24.5”
to “Extend Example 24.6”
Page
592: Problem 24.30: line 1: change “in Example
24.5” to “in Example 24.6”
Page
602: line 11: Change 4.1130 to 4.1150. (This was kindly
pointed out by Emilio Barone.)
Page
614: 6 lines from end: “(24.10)” should be “(24.7)”
Page
622: Line 2: change a to a1 in expression for the price of the perpetual
call so that it becomes
Page 667: line 10: change (S2d1, S2D) to (S1d1,
S2D) at end of line.
Page 705: line 9: 
should be 
Page 714: Problem 29.25, line 4: delete
“zero coupon” (This was kindly pointed
out by Emilio Barone.)
Page
729: 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 733: second line from end: Change y to Dy (This
was kindly pointed out by Emilio Barone.)
Page 736: 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
810: 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.)