Options, Futures, and Other Derivatives, Global Edition | 9781292410654 | John Hull |... | bol (2024)

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What is the most recent edition of options futures and other derivatives? ›

Options, Futures, and Other Derivatives, Global Edition, 11^th edition by John Hull, is the industry-leading, gold standard text for business and economics professionals.

This title is a Pearson Global Edition.

Futures and options (F&O) are derivative products in the stock market. Since they derive their values from an underlying asset, like shares or commodities, they are called derivatives. Two parties enter a derivative contract where they agree to buy or sell the underlying asset at an agreed price on a fixed date.

Derivatives include swaps, futures contracts, and forward contracts. Options are one category of derivatives and give the holder the right, but not the obligation to buy or sell the underlying asset. Options, like derivatives, are available for many investments including equities, currencies, and commodities.

The choice between futures and options depends on your investment goals and risk tolerance – Both instruments can be used for hedging, but options offer more flexibility and limited risk.

Options that expire at the close of the market are considered p.m. and options that expire the morning of the last trading day are a.m. The vast majority of options on futures expire at the close of the market on the last trading day, but there are notable exceptions.

The first modern organized futures exchange began in 1710 at the Dojima Rice Exchange in Osaka, Japan. The London Metal Market and Exchange Company (London Metal Exchange) was founded in 1877, but the market traces its origins back to 1571 and the opening of the Royal Exchange, London.

There are 185 futures stocks on NSE whose contracts you can trade in India.

Russell Sage and Put & Call Brokers

A notable development in the history of options trading involved an American financier by the name of Russell Sage. In the late 19th century, Sage began creating calls and puts options that could be traded over the counter in the United States.

Overview: Swing trading is an excellent starting point for beginners. It strikes a balance between the fast-paced day trading and long-term investing.

Which broker is best for futures trading? ›

Futures have several advantages over options in the sense that they are often easier to understand and value, have greater margin use, and are often more liquid. Still, futures are themselves more complex than the underlying assets that they track. Be sure to understand all risks involved before trading futures.

While options are a type of derivative, there are key distinctions between the two. Obligation vs. right: Derivatives, such as futures contracts, often come with an obligation to buy or sell the underlying asset. Options, on the other hand, provide the right, but not the obligation, to execute the contract.

Options are financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date. Call options and put options form the basis for a wide range of option strategies designed for hedging, income, or speculation.

For example, suppose you purchase a call option for stock at a strike price of Rs 200 and the expiration date is in two months. If within that period, the stock price rises to Rs 240, you can still buy the stock at Rs 200 due to the call option and then sell it to make a profit of Rs 240-200 = Rs 40.

The CME Group is the world's largest futures exchange and offers trading in a broad range of futures and options contracts across asset classes, including agricultural commodities, energy, metals, equity indexes, and foreign exchange. The exchange was founded in 1898 and is headquartered in Chicago, Illinois.

Synthetic futures using options contracts enable traders to manage the risk on the position more efficiently. By entering into various positions, traders can mitigate the downside risk and retain the potential for gains.

Cboe provides choice for our diverse trading customers by operating four U.S.-listed cash equity options markets, including the largest options exchange in the U.S. – Cboe Options Exchange.

Global Options Trading Has Now Overtaken Futures Volume - Bloomberg.