John Hull (born October 31, 1939) is an American economist as well as professor at the Massachusetts Institute of Modern Technology (MIT). He is best known for his work on the concept of choices as well as by-products, and also for his pioneering service the pricing of derivatives.

Hull was birthed in New York City and also matured in the Bronx. He received his bachelor's level in maths from the City College of New York in 1961, and his master's degree in business economics from the University of Chicago in 1962. He then took place to gain his PhD in business economics from the University of Rochester in 1966.

Hull started his scholastic job at the University of Toronto in 1966, where he educated until 1975. He after that moved to the University of British Columbia, where he educated until 1979. In 1979, he joined the professors at MIT, where he has actually been since.

Hull is the writer of a number of books, including Options, Futures, as well as Other Derivatives (1989), which is currently in its nine version as well as is taken into consideration the common textbook on derivatives. He has additionally created Risk Management and also Financial Institutions (2008), Fundamentals of Futures as well as Options Markets (2013), and also Derivatives Markets (2014).

Hull has actually obtained many awards and also honors for his work, including the Financial Engineer of the Year Award from the International Association of Financial Engineers in 2000, the CME Group-MSRI Prize in Innovative Quantitative Applications in 2011, and also the CME Group Melamed-Arditti Innovation Award in 2013. He was also elected a Fellow of the Econometric Society in 1995 and also a Fellow of the American Academy of Arts and Sciences in 2003.

Hull is presently the J.P. Morgan Professor of Derivatives and also Risk Management at MIT. He is likewise a director of the International Association of Financial Engineers as well as a member of the board of directors of the CME Group.

Our collection contains 19 quotes who is written / told by John.

"We started giving presentations at practitioner conferences in 1986, and since then all of our derivatives research has been stimulated by contact with practitioners"

"The HoLee model was the first term structure model. I remember reading their paper soon after it was published and as it was fairly different from many of the other papers that I had read, I had to read it quite a few times. I realized that it was a really important paper"

"Our tree is actually a tree of the short-term interest rate. The average direction in which the short-term interest rate moves depends on the level of the rate. When the rate is very high, that direction is downward; when the rate is very low, it is upward"

"I think VAR is a very healthy development within the industry"

"When interest rates are high you want the average direction in which interest rates are moving to be downward; when interest rates are low you want the average direction to be upward"

"We concluded that you cannot rely on delta hedging alone. It sounds simplistic to say that now, but back then, this was the sort of thing people were only just beginning to realize"

"There are challenges in terms of the measurement of VAR for what are known as nonlinear derivatives, where things like gamma and vega are important dimensions of the risk"

"The problem with interest rates are that you are not modeling a single number, you are modeling a whole term structure, so it is a sort of different type of problem"

"I guess any simple idea that is really good will catch on quickly"

"I didn't become interested in derivatives until 1982, 1983"

"One important measurement issue concerns the fat tails problem that I mentioned earlier. VAR is concerned with extreme outcomes. If the tails of the probability distributions we are using are too thin, our VAR measures are likely to be too low"

"Alan White and I spent the next two or three years working together on this. We developed what is known a stochastic volatility model. This is a model where the volatility as well as the underlying asset price moves around in an unpredictable way"

"Yes, our tree has an interesting shape. The center branches reflect the shape of the zero curve. When extreme parts of the tree are reached the branching pattern changes to accommodate the mean reversion"

"Our starting point then was trying to find a way to incorporate mean reversion into the HoLee model"

"If each of your time steps is one week long, you are not modeling the stock price terribly well over a one-week time period, because you are saying that there are only two possible outcomes"

"Our research led on to other things, such as the fact that exchange rates are not lognormally distributed"

"The real challenge was to model all the interest rates simultaneously, so you could value something that depended not only on the three-month interest rate, but on other interest rates as well"

"In the interest rate area, traders have for a long time used a version of what is known as Black's model for European bond options; another version of the same model for caps and floors; and yet another version of the same model for European swap options"

"Briefly speaking, our conclusion is that stochastic volatility does not make a huge difference as far as the pricing is concerned if you get the average volatility right. It makes a big difference as far as hedging is concerned"