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Then there is a nice, in depth discussion of the Major Manufacturers & Their Classics. This section is an excellent article about 7 of the most well known pen makers and their most successful or notable developments and pen models. It's also another look at the history of fountain pens. Of course, some people would say there should be other makers included, but I don't think anyone would say that these 7 don't belong here.
The rest and biggest part of the book is devoted to pictures of specific pens and a value for them. Most of the pictures are colored. The section is broken down into:
Early Fountain Pens
The Golden Age
The Modern Age
Contemporary Fountain Pens
The pictures are EXCELLENT! There are some representative reproductions of old fountain pen ads that give a good feel of the older pen era and also are valuable in identifying some pen models. These ad pictures are sprinkled through the book but are not overdone.
The pen prices, of course, go out of date fast but they do give an idea of the relative value of the pens. The prices are also given in retail, not street prices. This is a minor fault that is just about unavoidable in a book of this type. Prices would have to be issued at close intervals to remain current and street prices are nearly impossible to keep up with.
In my opinion, this is a classic book and the best I've seen about fountain pens. I don't see a single major fault. The quality of binding and printing is excellent also. While not a coffee table book as such and much more valuable, it could double for that if opened to the fine color pictures.
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If you need a pocket guide to carry to conventions, it's perfect. If you want something to help you figure out how much to bid on E-Bay, it's perfect. Otherwise, just get it for the vibrant color pictures (No black & white) , which strangly have dolls that haven't even been released yet.
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Interestingly, QF does not "replace" a bookshelf of quant books -- rather it nicely compliments many that you're likely to have such as Taleb, Neftci etc. As sales of QF increase, it is likely that readers will be less likely to buy a derivatives book that is over their head.
Volume 1 covers 37 chapters of the equities/currency derivatives world, While Volume 2 covers the Fixed Income World, Risk Measurement , Miscellaneous Topics and Numerical Methods.
Chapter 10 has an excellent and all too rare discussion of Probability Density Functions and First Exit Times, whilst Chapter 14 has an outstanding Trading Game invented by one of Paul Wilmott's former students.
Chapters 16 through 21 cover the Path Dependent world while the balance of the chapters cover extensions to Black Scholes.
Its in these sections that Wilmott delivers some surprising thoughts and insights into Stochastic Volatility Surfaces that are currently the rage.
Throughout both volumes I continue to be astonished at how clear, concise and effective his explanations are. The icons are not annoying at all -- rather I found myself skimming the icons to find out what was required to be committed to memory in each section versus what was background.
As obvious as it sounds, a glaring weakness in Derivatives texts is the inability of authors to elucidate what must be memorized as rote for the student to make further progress. Paul's easy to follow icons lay out a precise plan of study.
I can't say enough about what a leap this is over competing texts.
In Volume 2, Chapters 38 through 50 cover models that Wilmott likes as well as ones that he doesn't [again, a rather novel approach]
Some surprises in Chapters 51 and 52 are an excellent overview of Portfolio Management and a survey of Robert Merton's Asset Allocation in Continuous Time.
Sprinkle in outstanding chapters on Derivatives Fiascos, Real Options, Energy Derivatives and 5 chapters on Numerical Methods and an astonishing survey of Quantitative Finance is complete.
Throughout the books Paul's practical use of Term Sheets and quick and dirty VB code and spreadsheet tricks [you just have to see his Excel shortcut for approximating the Normal distribution] leave the reader constantly wanting to rev ahead.
To round out a tremendous effort, Wilmott also pays homage to authors that he's found helpful and he's generous with suggestions on further reading. This builds sorely needed confidence when attempting new material.
The comparison with Richard Feynman is apt but misses an important detail...Feynman was not noted for turning out hordes of talented understudies. Paul Wilmott has turned out enough talented graduate students that maybe he will be a bona fide cult leader someday.
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I am annoyed with the book. It has been a while, but I have had quite a bit of math. I know a good math textbook. Good math textbooks will define the terms well, and the derivations will be followed by good examples to help you understand the derivations. I do not recommend this book to anyone that does not have more than an undergraduate degree in math or engineering. Professors of mathematics will probably understand the derivations and may not examples or a clear definition of all the terms.
The authors do present a lot of good general information. For those who are interested, in addition to American and European options, there are Russian options, perpetual options, compound options, binary options, chooser options, Asian options, lookback options, and "out-of-space" options (just kidding on the last).
Most people wishing to price options, which is quite complicated, need more than the theoretical derivations of this book. Also, they should have more than just a method to follow blindly without understanding that some options programs provide. If after the theoretical derivations, this book had provided specific derivations, followed by practical understandable examples with clearly defined terms, I would recommend it highly.
For example, I bought and recommend "Credit Derivatives" by Tavakoli, since I was looking for material on this subject, and this book didn't give any description of the types of products.