For undergraduate and graduate courses in derivatives, options and futures, financial engineering, financial mathematics, and risk management. Bridge the gap between theory and practice. This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States. Designed to bridge the gap between theory and practice, this introductory text on the futures and options markets is ideal for those with a limited background in mathematics. The eighth edition has been updated and improved—featuring a new chapter on securitization and the credit crisis, and increased discussion on the way commodity prices are modeled and commodity derivatives valued. Updated! Offer the latest software: DerivaGem version 2.00 is included with this book. There is a new Getting Started section at the end of the book—and DerivaGem is now compatible with Office, Mac, and Linux users. This program consists of two Excel applications: • The Options Calculator consists of easy-to-use software for valuing a wide range of options. • The Applications Builder consists of a number of Excel functions from which users can build their own applications. It includes a number of sample applications and enables students to explore the properties of options and numerical procedures more easily. It also allows more interesting assignments to be designed.