Hull vs Wilmott to determine those tough quant algorithms, models, and other number crunching
Starting out in Quant? Which books are best to start with? Ok. There are only two to choose from. I mean, I have only dove into two. There are three highly recommended books to start with.
Options, Futures, and Other Derivatives with Derivagem CD (7th Edition) by John Hull
Where do I start on this? This appears to be the easier of the books that I was introduced to. His latest includes updates on the recent financial crush. This includes how to work in emerging markets like China or India. The one thing I like about this book is its ability to keep things simple. Learning quant aint’ easy so don’t think you will pick it up in the first read. It will take at least two or maybe three. This is very heavy math. Unless you have a background in it like physics or engineering, this will be a very steep learning curve. The book alone is about 800 pages from what i remember so this is definitely not light reading.
Paul Wilmott on Quantitative Finance 3 Volume Set (2nd Edition)
Paul Wilmott has got something going on as compared to John Hul.. In my mind, both could be considered God fathers of quant by authoring these books. Althought Wilmot has about 1200 pages in this three volume set, you will find it very overwhelming as compared to Hull. As said, start with Hull’s book first as it is easier to lump. Wilmott introduces all the same as Hull but it is at much more overwhelming as less simplistic approach. I am not knocking Wilmott’s book, but understand it seems to be more of an advanced book in the last two sets. Just understand, serious quants will use this as their bible. Get this once you earn your chops later in the game.