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### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: May 4th, 2007, 3:57 pm
I wonder whether on page 356, the second expression for epsilon shouldn't be divided by sqrt(2)

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: May 4th, 2007, 5:03 pm
You are right! (and now I just remeber P.W. pointed this out to me as well)Thanks to both of youI just added it to my erreta list that can be found herehttp://www.espenhaug.com/books.html Typos will likely be fixed in re-prints. I figured out this had happened in my first edtion without me being aware of it, publisher had looked up my erreta page

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: May 11th, 2007, 12:56 pm
on several instances, say page 460 eq. 12.19, if the indexes i,j in the double summation are like they are used, ie. i=1..n,j=1..n,i not equal j, then number 2 shouldn't be in front of double summation. Either removing 2 or changing the indexes to i=1..n,j=2..n,i<j would make the formulas correct.

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 15th, 2008, 3:04 pm
An absolutely fantastic book, and a great author!Collector: Any plans for a third edition?

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 16th, 2008, 10:16 am
Third edition probably, but earliest 3 years from now.just now writing a new book, it is not about options, but it discusses a topic that have implications for options,economic, statistics, mathematics, physics, biology, cosmology, alchemy, philosophy, love, religion, ....hope to have it out within 2 years.

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 16th, 2008, 1:06 pm
QuoteOriginally posted by: CollectorThird edition probably, but earliest 3 years from now.looking forward to it !Quotejust now writing a new book, it is not about options, but it discusses a topic that have implications for options,economic, statistics, mathematics, physics, biology, cosmology, alchemy, philosophy, love, religion, ....hope to have it out within 2 years.I trust that you'll finally debunk global warming ?

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 16th, 2008, 9:18 pm
Is the Net Weighted Vega Exposure on page 82 = to modified Vega. Sorry about the question, but i do not understand the concept of modified Vega and particularly the relation to the so called Volatility Strategies of Second Order. Would You mind describing this strategy briefly ?

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 17th, 2008, 8:05 am
QuoteOriginally posted by: StockBossAn absolutely fantastic book, and a great author!Collector: Any plans for a third edition?A second edition is been published few time ago and you are asking for a third edition???Books are expensive and I really don't like books with many editions after just few months (like Hull for example!).A new edition must come up ONLY if it is really necessary because it changes drammatically the contents of the previous one (see the book in question and "Volatility and Correlation" by Rebonato for examples).Most of the new editions just add a new chapter to the book. It would be better to upload this chapter on the author's homepage!Pier

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 18th, 2008, 7:50 am

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 18th, 2008, 8:47 am
Next edition in C#?

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 18th, 2008, 8:57 am
Next edition will likely have C code in one way or other....but earliest 3 years - 2 days ahead. good thing I finished up a 10 year project (that I almost had given up to solve) now that took big part of my time, so more time to write books now...

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 18th, 2008, 10:42 pm
QuoteOriginally posted by: CollectorNext edition will likely have C code in one way or other....but earliest 3 years - 2 days ahead. good thing I finished up a 10 year project (that I almost had given up to solve) now that took big part of my time, so more time to write books now...are you semi-retired after making enough \$? Have you thought to be a risk advisor by running a firm?

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 21st, 2008, 6:52 am
Quoteare you semi-retired after making enough \$? Have you thought to be a risk advisor by running a firm?Yes these days you need to make a lot of \$ (USD), I just made moderate \$ (or small \$ it is relativistic). By luck I sold most of my \$ years ago when \$ still had good value. I do not believe in retirement, not even after death I plan to retire, just change profession....for example as nutritious soil for a nice tree, my first degree is tree-farming and garden plants, options are just one of my many hobbies.

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 21st, 2008, 10:43 am
QuoteOriginally posted by: CollectorQuoteare you semi-retired after making enough \$? Have you thought to be a risk advisor by running a firm?Yes these days you need to make a lot of \$ (USD), I just made moderate \$ (or small \$ it is relativistic). By luck I sold most of my \$ years ago when \$ still had good value. I do not believe in retirement, not even after death I plan to retire, just change profession....for example as nutritious soil for a nice tree, my first degree is tree-farming and garden plants, options are just one of my many hobbies.The fact that you are so motivated makes you succeed and become a richer single guy. Nice job done.

### New 2nd Edition - The Complete Guide to Option Pricing Formulas + CD-ROM by Espen Gaarder Haug

Posted: April 27th, 2008, 3:17 am
Thanks for writing this wonderful book!However, I have a question regarding the formula for local volatility on page 459. The formula also appears in Paul's book.I have seen another version of the formula at Performance Trading where the implied volatility in the denominator is squared. I've seen another thesis that quotes the 'volatility squared' version of this formulaI'm sure all of us would be grateful if you or Paul could confirm the correct formula