AN INTRODUCTION TO DERIVATIVES AND RISK MANAGEMENT, 10^th edition
Errata Page

(Name in parentheses is the person who reported it)

To report errors, email mailto:dchance@lsu.edu?subject=erratum in book

The following errors are in the print and 2019 corrected e-verion.

The following errors appear in the printed version of the 10^th edition.  They have been corrected in the e-version that was releared in 2019.

Text corrections

Chapter	Page(s)	Location on Page	Current Material	Correction	Who reported & When (blanks indicate we discovered the error ourselves)
1	41	First full paragraph, 8th - 9th lines	"Derivatives based on indexes usually are usually specified ..."	Drop the first "usually"	Jack Broughton, 11/6/17
2	46	Fourth line Under Section 2-4 OVER-THE-COUNTER DERIVATIVES TRADING	"ask price, and a price at which she will sell, called the bid price."	"Bid" and "ask" are reversed.	Shannon York, 4/11/15
3	80	Third to last full paragraph	(X2 - X1)(1 + r)-T	Superscript should be positive, (X2 - X1)(1 + r)T	Brian Payne, 8/31/17
3	96	Second to last paragraph under 3-3h.	"...worthwhile to exercise the stock early, ..."	Should read "...worthwhile to exercise the put early, ..."	Jack Broughton, 11/11/7
4	129	Line just above the first equation for C.	"...step back to time 1."	Should read "...step back to time 0."	Jack Broughton, 11/12/17
4	133	First two paragraphs, surrounding the equation at the top	The reference to time 2 three lines before the equation and all references to time 2 and time 3 in the paragraph below the equation.  (Note:  the reference to time 2 in the second line is correct.)	Time "2" should be Time "1" and Time "3" should be Time "2"	Jack Broughton, 11/12/17
5	156	Fourth line after first equation	"After multiplying by the second term on the right-hand side of ..."	"After multiplying the second term on the right-hand side of the Black-Scholes-Merton formula by e^(-rcT) ...". (i.e., should have with -rcT in the exponent." In addition, add e^(-rcT) bewteen -X and N(d2) in the equation below.	Jack Broughton, 11/17/17
5	156	Sentence before third equation	"...multiplying by e^(-rcT) ..."	"...multiplying by e^(rcT) ..." (i.e., put negative in exponent)	Jack Broughton, 11/17/17
5	158	First line below "If ST ≤ X)	"ST/X > 1"	"ST/X ≤ 1"
5	158	Fourth line from top	"+ ꚙ"	"+ ꚙ" should be "- ꚙ" (plus infinity should be minus infinity)	Jack Broughton, 11/27/17
5	175	First sentence in Section 5.7	"..., which we shall denote as."	Should be followed by Greek letter sigma with hat over it.	Tim Miller, 5/1/16
5	197	Problem 11, sentence that begins "Estimate ..."	"Estimate the historical volatility of the stock for use in the Black-Scholes-Merton model."	Delete the sentence.  (This sentence is the instruction in Problem 12.)  Replace with the sentence, "Use 0.21 as the continuously compounded return on the stock.	Ryan Elvidge, 10/22/15
7	262	Footnote 5	"T"	Should be "T1" (subscript)	Jack Broughton, 11/27/17
7	277	Just above Table 8	"In other words, at time T"	Should say "time t"	Jack Broughton, 11/27/17
7	278	Section 8-1c	"We have already noted that the price," "we can set the foward contract price," "The forward price is seen as the price", (box) "has a price at the start"	All should say "value" instead of "price"	Jack Broughton, 11/27/17
8	279	Second paragraph in right column, 10th line	1 - r	Change 1 - r to 1 + r1	Jack Broughton, 12/2/17
8	279	Second paragraph in right column, 12th line	FT-2(T)	Change to F(T-2,T)	Jack Broughton, 12/2/17
8	279	Second paragraph in right column, 13th line	1 - r1	Change to 1 + r1	Jack Broughton, 12/2/17
8	279	Second paragraph in right column, second to last equation	-[1/1(1 + r1) ...	Change to -[1/(1 + r1) ... (delete the 1 after the "/")	Jack Broughton, 12/2/17
8	281	First equation	ft(T)	Should be f0(T)	Jose de Fonseca , 10/5/17
8	281	Second to last full paragraph	"faces"	"face"	Jack Broughton, 12/2/17
8	283	Second line	St	Change to ST	Jack Broughton, 12/2/17
8	284	6th line of paragraph after first equation	e^delta c T	Insert - (minus sign) in front of delta c	Jack Broughton, 12/2/17
8	284	2nd full paragraph	"The dividend yield enters the model as the factor ..."	There should be a minus sign in front of the delta in the exponent	Jose Da Fonseca, 9/5/17
8	286	First equation on page	F(0,T) = S0(1 + r)-T(1 + r)T	F(0,T) = S0(1 + ρ)-T(1 + r)T
8	288	First line of second paragraph	"uncertainly"	Change to "uncertainty"	Jack Broughton, 12/2/17
8	315	Problem 21	"for the next six months" and "(annual compounding)" on two lines.	Change "for the next six months" to "for the next year" and delete "(annual compounding)" on two lines.	Jose Da Fonseca 9/12/17
9	321	Table 9.2, second to last equation	"0.0769"	Change to "0.0796"	Steve Welch, 11/14/15
9	331	Equation at bottom	T is mistakenly in superscript (exponent) within the exponent.	T in exponent should be on same line as risk-free rate and dividend yield.  It is not a superscript to a superscript.	Aaron Dancy, 3/27/17
9	332	Second full paragraph, starts "Let us now ..."	T is mistakenly in superscript (exponent) within the exponent.	T in exponent should be on same line as risk-free rate and dividend yield.  It is not a superscript to a superscript.	Jose de Fonseca, 10/5/17
9	335	Second equation	T is mistakenly in superscript (exponent) within the exponent.	T in exponent should be on same line as the domestic and foreign risk-free rates.   It is not a superscript to a superscript.	Jose de Fonseca, 10/5/17
10	341	Last equation and following sentence	"... = 0.9213, which is shown in Table 9.3"	Change the comma after 0.9213 to a period and drop "which is shown in Table 9.3"	Bob Welch, 2/1/16
10	357	Sentence after second formula	"and A represents the change ..."	Change "A" to "Δ" (Delta)	Shannon York, 9/28/15
10	360	Paragraph starting "In addition ..."	"uncertainly"	"uncertainty"	Jose de Fonseca, 10/5/17
10	363	Paragraph starting "Recall that T-Bond ..."	"$93,453,125"	"$93,453.125"	Jose de Fonseca, 10/5/17
10	385	Fourth offset equation	βr	Change subscript "r" to "T"	Shannon York, 9/28/15
11	399	Table 11.1, Jun 15 (both ABS Owes and XYZ Owes columns)	"958,333"	Change to "958,833"	Steve Welch, 11/26/15
11	406	First box on left	"A basis swap is priced by adding a spread to the higher rate or subtracting a spread from the lower rate."	Should be "subtracting a spread from the higher rate or adding a spread to the lower rate."	Shannon York, 9/28/15
11	422	Table 11.8, 360 row	"-864,518"	Should be "-884,518"	Steve Welch, 12/6/15
11	423	Next to last equation	"Rq"	"Rq" (q should not be a subscript)
11	424	Paragraph beginning "Now let us ..."	"(1/S0)St - 1"	"(1/S0)S90 - 1"	Jose de Fonseca, 10/5/17
11	424	Table 11.9, equation at bottom	Numerator:  "1 - 0.9622"	Should be "1 - 0.9662"	Justin Chapman, 4/27/15
12	455	Table 12.6, first line in table	"0,525,000"	Should be "10,525,000"	Aaron Dancy, 4/23/17
14	521	Second paragraph, second, third, and fourth lines	2nd line:  "12.02" 3rd & 4th lines:  "11.01 percent, 11.61 percent, and 12.01 percent"	Should be 2nd line:  "12.03" 3rd line:  Should be "10.01 percent, 11.62 percent, 13.01 percent, and 14.35 percent"	Nguyen Thi My Hoang, 6/11/15

PowerPoint Corrections

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Solutions Corrections

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Note:  New solutions have been placed on the publisher web site in late April, 2013 to rectify some visibility and printing problems with certain pages

Test Bank Corrections

(none at this time)

Software Corrections