Funny, this book was considered not mathematically rigorous enough in my program but I agree, it is a bad idea to not be familiar with this book because the lingo the book uses (for example, sticky delta) is widely used in trading desks and one cannot afford to be unaware. For my program, Shreve's Stochastic Calculus for Finance (I & II) are the old & new testaments
Having used both Hull and Shreve in two different courses I'd say they're aimed at very different audiences. The course I took using Shreve didn't actually teach much about real world "options, futures, and other derivatives", but treated them more like abstract mathematical ideas and focused more on the mathematical theory used to model such contracts. While the course using Hull focused more on those contacts, not as abstract mathematical concepts, but as real things that actually exist and are actually traded by real people in the real world with all the messiness and uncertainty that can entail. Admittedly a large part of this was no doubt due to the Shreve based course being taught by the math department and the Hull based course being taught be economics department
While I on many levels preferred the Shreve based course, if I had to pick one for practitioners working day to day with this stuff (which I don't actually do, despite my degree), I'd definitely pick Hull.
Optional types and futures are both important and useful examples of monads—in the “container” and “action” interpretations, respectively; and derivatives are the method of constructing zippers, which are an accessible example of comonads, as well as a useful method of constructing other things like parsers, so these are actually pretty solid concepts for a functional programmer—whether in Haskell or otherwise. I would totally buy that book. :)
It is true that it is, but I always thought it was underserved. It’s not particularly clear or insightful and it is very academic.
On interest rates and yield curves, a book I would recommend is Sadr’s Interest Rates Swaps and their Derivatives [1]. Unfortunately it is a bit dated and a lot happened since it was written. But it is a very good book to understand interest rate models, which focuses more on the intuition and practical aspects and which I think is a lot more useful to a professional.
I studied engineering, applied maths and finance. I structured interest rate derivatives for a while. That’s the book I recommend to new joiners, even those without a stem background.
