My thinking is that the 7th ed was written just as the credit crunch started to, well... crunch - so there must be a pretty big rewrite of the credit side at least (copulae etc)Not that Hull was ever particularly good on Credit derivs anyway...

Does anyone know if a new edition of Hull is on its way anytime soon?Imagine my chagrin when upon upgrading to the 6th edition, the 7th came out about three weeks later - I don't want that to happen again!

<t>Well, today I learned a valuable lesson in life. Having read the thorough trashing given to this book on this thread, I chose to ignore all advice and buy the book anyway. I thought: "Well, how bad can it be?", and since there were a number of pretty interesting topics covered, in what I thought ...

<r>Alan, thanks. I had been aware of the equivalence (formally proven or not) of the PDE vs. Martingale (vs. a binomial tree of appropriately short timestep) approaches. And you're right, being a physicist by training I instinctively trust the PDE-style approach much more than the Martingale approac...

Agreed. Silly omission on my part.

<t>Open (and possibly stupid) question: At a high level, how would you characterise the main approaches to Derivatives pricing?I see a few main mechanisms:1. A 'classical', PDE-based approach a la Black-Scholes. Model the dynamics of the underlier, form a risk-free portfolio and argue that this mand...

One thing I never understood (presumably from lack of study) is: why is dWdW = dt?Considering dWdt = 0 and dtdt = 0...