(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 everion.
Chapter  Page(s)  Location on Page  Current Material  Correction  Who reported & When (blanks indicate we discovered the error ourselves) 
2  27  2nd full paragraph, fourth line  "above $40.72"  Delete "above $40.72"  CheolHo Park, 4/20 
2  27  2nd full paragraph, fifth line  "it"  "the option"  CheolHo Park, 4/20 
2  27  2nd full paragraph, sixth line  "40.72"  "43"  CheolHo Park, 4/20 
The following errors appear in the printed version of the 10^{th }edition. They have been corrected in the eversion 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 24 OVERTHECOUNTER 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  (X_{2}  X_{1})(1 + r)^{T}  Superscript should be positive, (X_{2}  X_{1})(1 + r)^{T}  Brian Payne, 8/31/17 
3  96  Second to last paragraph under 33h.  "...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 righthand side of ..."  "After multiplying the second term on the righthand side of the BlackScholesMerton formula by e^(r_{c}T) ...". (i.e., should have with r_{c}T in the exponent." In addition, add e^(r_{c}T) bewteen X and N(d_{2}) in the equation below.  Jack Broughton, 11/17/17 
5  156  Sentence before third equation  "...multiplying by e^(r_{c}T) ..."  "...multiplying by e^(r_{c}T) ..." (i.e., put negative in exponent)  Jack Broughton, 11/17/17 
5  158  First line below "If S_{T} ≤ X)  "S_{T}/X > 1"  "S_{T}/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 BlackScholesMerton 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 "T_{1}" (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 81c  "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 + r_{1}  Jack Broughton, 12/2/17 
8  279  Second paragraph in right column, 12th line  F_{T2}(T)  Change to F(T2,T)  Jack Broughton, 12/2/17 
8  279  Second paragraph in right column, 13th line  1  r_{1}  Change to 1 + r_{1}  Jack Broughton, 12/2/17 
8  279  Second paragraph in right column, second to last equation  [1/1(1 + r_{1}) ...  Change to [1/(1 + r_{1}) ... (delete the 1 after the "/")  Jack Broughton, 12/2/17 
8  281  First equation  f_{t}(T)  Should be f_{0}(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  S_{t}  Change to S_{T}  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) = S_{0}(1 + r)^{T}(1 + r)^{T}  F(0,T) = S_{0}(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 riskfree 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 ..."  Jose de Fonseca, 10/5/17  
9  335  Second equation  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 TBond ..."  "$93,453,125"  "$93,453.125"  Jose de Fonseca, 10/5/17 
10  385  Fourth offset equation  β_{r}  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  "R_{q}"  "Rq" (q should not be a subscript)  
11  424  Paragraph beginning "Now let us ..."  "(1/S_{0})S_{t}  1"  "(1/S_{0})S_{90}  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
*Indicates that these pages have been replaced with new Powerpoints downloadable on the publisher web site.
Chapter  PPT Page(s)  Location on Page  Current Material  Correction  Who reported & When (blanks indicate we discovered the error ourselves) 
9  23  Equation and text material are jumbled  Corrected page is available on the Cengage web site. Please redownload. 
Solutions Corrections
*Indicates that these pages have been replaced with new solutions downloadable on the publisher web site.
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
Chapter  Page(s)/Problem #  Location on Page  Current Material  Correction  Who reported & When (blanks indicate we discovered the error ourselves) 
4  Problem 9  Answer cannot be seen without clicking in the equatio box  Corrected page is available on the Cengage web site. Please redownload.  
11  p. 105, Problem 16  B_{0}(90), B_{0}(180), B_{0}(270), B_{0}(360)  B_{0}(180), B_{0}(360), B_{0}(540), B_{0}(720)  Jose de Fonseca, 10/5/17 
Test Bank Corrections
(none at this time)
Software Corrections
Last updated: April 22,
2020