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Rating: 
Summary: A (almost) complete reference
Review: I bought the book as a practical reference in risk management/ applied financial engineering. I think the book accomplishes this goal. It describes concepts and techniques in a clear, logical way and, most important, gives clearly outlined numerical examples, which help to implement the models. If all material would be written that way one didn't have to buy several introductory books and save a lot of money. This is especially true for professionals who want to implement things in a reasonable time without loosing time with (generally) confusing and incomplete derivations that have to be figured out afterwards through a painful process. I must say though, that the work lacks to present some important concepts and techniques in interest rate risk management. As in many cases, fixed income applications were almost omitted. A treatment of PCA applications (hedging, simulation) would be very welcome and a more complete description with examples of interest rate models with implementations would complete this work.
Rating: 
Summary: Excellent reference for financial derivatives
Review: I have read this book for the class of modeling financial derivatives and I was very impressed by the presentation of the theories of financial derivatives and risk management. The book covers derivative pricing in a very detailed form. THe best thing about this book is the presentation of the problems(mathematical) throughout the book, either through graphs, spreadsheet models, etc. It is not pure theory book, but it also contains many applications which encompas real finanical world. Such presentation enables the reader to easier comprehend the contents of the subject. Overall, the book is very very good for a beginner in finacial derivatives fiels, but it is also a great contribution to one more experienced in the field. Greatest emphasis was put on interest rate models, option models, volatility and risk management techniques.
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