Hi all,Has anybody read the book on Financial Engineering by Neftci. How'd you review it? Is it more on the basic side?I was able to locate a thread on this book but it talked more about its availability rather than comments on its content.Please assist,Cheers!

Hi QuantwannabeI think it is quite good. It is more engineering than mathematical technical. There is some interesting chapters on variance/volatility swaps. And he have collected a lot of real world business cases! You can see more on his web site www.neftci.com (there is a table of contents etc)If is a bit difficult to compare it to f.ex Hulls book and the reason is thatthey have different objectives. Hulls book has chapters onnumerical methods (monte carlo, finite difference, binonial trees etc),you dont find that in Neftci's book. By the way you might want to check out the new book by Jan Dash!sojohan

Thanks Sojohan for your comments on Neftci. They're quite helpful.By Dash's book are you referring to "Quantitative Finance and Risk Management: A Physicist's Approach"? I hope its not too techie..Thanks again,Quanttwannabe.

We can supply Principles of Financial Engineering by Neftci and Quantitative Finance and Risk Management by Dash.Suzanne

Hi QuantiwannabeRegarding the new book by Jan Dash, it is difficult to say how technical it is......I have the table of contents, but no sample chapter. The Publishing company "world Scientific" does not publish sample chapters......sojohan

Quotes from www.fenews.com: Salih N. Neftci addressed his book, Principles of Financial Engineering, published by Butterworth-Heinemann, a division of Elsevier (2004) to a broad sweep of readers: At one end of the continuum, traders who don’t have formal training in math and won’t understand everything; at the other end, advanced graduate students with excellent math skills who will find their understanding of complex models enhanced. “And anyone in between,” Neftci says. “There are other excellent books in finance, but before this, there was no book that focused specifically on financial engineering.” Neftci, who teaches in New York City, London and Lausanne, Switzerland, expects his book to have an international readership. He spent three years, five-to-six hours a day, working on it and has difficulty believing that it is finished. “When I sit and do nothing I have the impression I have to get up and work on it,” Neftci says. “I thought I’d have more time when it was done, but there are so many things left to do. For instance, studying Chinese financial markets is my hobby, especially Shanghai.”Neftci’s next project will be an advanced version of his current book, presenting calibration is sues in finance for practitioners in the field.

Neftci's book is great.It has alot of real world examples, and defines problems and solutions from the view of the trader (practioner) rather than classroom professor.Therefore, it is an interesting reading for a student, and very informative ...as lots of instruments that are not widely discussed at intoductory levels are well explained.demian

Hey thanks a lot everybody for the comments.Cheers,

QuoteOriginally posted by: DemianNeftci's book is great.It has alot of real world examples, and defines problems and solutions from the view of the trader (practioner) rather than classroom professor.Therefore, it is an interesting reading for a student, and very informative ...as lots of instruments that are not widely discussed at intoductory levels are well explained.demianTotally agree. Neftci's "Principles of Fianancial Engineering" is my most favorite finance book now. In my opinion, it is even better than John Hull's book. Actually, these two books have different objectives, therefore, by "better", I mean I get more benefit and inspiration by reading Neftci's book. This book is closely related to the real-world practice, his cut-in introduction and explanation on each topic is inspiring.