The Prentice Hall Series in Finance Learn about derivatives from the book that is both the top seller in the university and college market and a "must have" for derivatives practitioners. The seventh edition continues the standard of excellence. New material includes: Employee Stock Options: How they should be valued, whether they align the interests of senior executives with those of shareholders, accounting issues, backdating scandals, etc. (Chapter 14). Credit Derivatives: U.S. subprime mortgages, asset-backed securities, the credit crunch of 2007, how transactions involving credit indices work, the valuation of CDOs, the implementation of the Gaussian copula model, alternatives to the Gaussian copula model, etc. (Chapter 23). Volatility Trading: Volatility swaps, variance swaps, and the VIX index (Chapter 24).