Derivatives-market

I am afraid that the 3 reviewrs before me are the same person.
Amazon makes it quite easy for promotional wizards to do that so sales can be increased.
So far there is not even one review that tackes or critisizes this book. Are we all that perfect or should we become a victims of made up book?

Most textbooks on financial modeling are devoted to describing specific models, such as those for stocks, bonds, or options, or to their specific applications such as arbitrage trading and portfolio management. Few books describe the financial principles behind the models and tie the models to business solutions.

The Oxford Guide to Financial Modeling by Thomas S.Y. Ho and Sang Bin Lee (yes, the authors of the Ho-Lee model, the first arbitrage-free interest rate model) successfully ties the thought processes and applications of the financial models together and describes them as one process which provides business solutions. The authors very ably explain all the models used in finance, take the financial theory and modeling to the next level and develop a business model framework that integrate the fields of corporate finance, fixed income, derivatives, and Asset & Liability management.

Each chapter begins by introducing a practical problem. The financial models that provide solutions to the problem are then described. The chapter concludes with how the models can be applied. Because of the nature of the material on financial models, the book presents many results as mathematical formulations, yet the text is very enjoyable as the more rigorous mathematical derivations are deferred to the appendices and to the epilogue.

What really makes The Oxford Guide to Financial Modeling a brilliant educational project and just not another excellent textbook is the companion web site that serves as an interactive workbook designed specifically for the book. The site is designed to further enhance understanding of the use and applications of the models referred to in the book and it is accessible free of charge.

This book can very well open the next page of the financial engineering revolution. In additional to all the information provided by Hall's book, this book systematically discusses financial modeling procedures for existing financial instruments, and develops a framework to extend current research to accommodate future scenarios. I think the most impressive part of the book is the discussion about how equities (like SUBX and JDSU) can be valued as embedded bond options given their debt structures and earning powers. The industry-standard literatures use much more crude and subjective methodologies such as WAC and discounted cashflow.

The authors of this book are also the creator of Ho-Lee model. Therefore it is not surprising to find extremely detailed explanations on virtually all the interest rate and bond models. If your career aspirations is to become a bond trader or a quant in general, this book is a must read!

This book covers the topic very well. It is clear and concise. Useful for anyone who wants an overview of risk management concepts. But if you are like me who understands better with lots of numbers and examples, this is not it.

A good book to tell you methodical risk analysis in the area of fincance and marketing. If more interpretaions of analysis results written there, I would have rated it as "5" stars.