---
title: "5 Model Quotes By John Hull"
description: "5 Model quotes by John Hull. Plus more from John Hull and more Model sayings from other authors."
image: "https://sms4smile.com/quotes/i/252/john-hull-28186_after_the-holee-model-was-the-first-term-struc_61465.jpg"
---

> [The HoLee model was the first term structure model. I remember reading their paper soon after it was published and as it…](https://sms4smile.com/quotes/john-hull/the-holee-model-was-the-first-term-structure-model-i-remember-reading/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

[Image](https://sms4smile.com/quotes/i/252/john-hull-28186_after_the-holee-model-was-the-first-term-struc_61465.jpg)

> [Alan White and I spent the next two or three years working together on this. We developed what is known a stochastic…](https://sms4smile.com/quotes/john-hull/alan-white-and-i-spent-the-next-two-or-three-years-working-together/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

[Image](https://sms4smile.com/quotes/i/c6b/john-hull-28186_alan_alan-white-and-i-spent-the-next-two-or-t_547807.jpg)

> [Our starting point then was trying to find a way to incorporate mean reversion into the HoLee model.](https://sms4smile.com/quotes/john-hull/our-starting-point-then-was-trying-to-find-a-way-to-incorporate-mean/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

[Image](https://sms4smile.com/quotes/i/3f9/john-hull-28186_find_our-starting-point-then-was-trying-to-fi_1124416.jpg)

> [The real challenge was to model all the interest rates simultaneously, so you could value something that depended not only on the…](https://sms4smile.com/quotes/john-hull/the-real-challenge-was-to-model-all-the-interest-rates-simultaneously/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

[Image](https://sms4smile.com/quotes/i/64c/john-hull-28186_challenge_the-real-challenge-was-to-model-all-the_2491288.jpg)

> [In the interest rate area, traders have for a long time used a version of what is known as Black's model for…](https://sms4smile.com/quotes/john-hull/in-the-interest-rate-area-traders-have-for-a-long-time-used-a-version/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

[Image](https://sms4smile.com/quotes/i/415/john-hull-28186_another_in-the-interest-rate-area-traders-have-f_2576544.jpg)

## Other authors on Model

## More by John Hull

> [The HoLee model was the first term structure model. I remember reading their paper soon after it was published and as it was fairly…](https://sms4smile.com/quotes/john-hull/the-holee-model-was-the-first-term-structure-model-i-remember-reading/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [Alan White and I spent the next two or three years working together on this. We developed what is known a stochastic volatility model.…](https://sms4smile.com/quotes/john-hull/alan-white-and-i-spent-the-next-two-or-three-years-working-together/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [I didn't become interested in derivatives until 1982, 1983.](https://sms4smile.com/quotes/john-hull/i-didn-t-become-interested-in-derivatives-until-1982-1983/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [I guess any simple idea that is really good will catch on quickly.](https://sms4smile.com/quotes/john-hull/i-guess-any-simple-idea-that-is-really-good-will-catch-on-quickly/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [Briefly speaking, our conclusion is that stochastic volatility does not make a huge difference as far as the pricing is concerned if you get…](https://sms4smile.com/quotes/john-hull/briefly-speaking-our-conclusion-is-that-stochastic-volatility-does/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [Our starting point then was trying to find a way to incorporate mean reversion into the HoLee model.](https://sms4smile.com/quotes/john-hull/our-starting-point-then-was-trying-to-find-a-way-to-incorporate-mean/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [We concluded that you cannot rely on delta hedging alone. It sounds simplistic to say that now, but back then, this was the sort…](https://sms4smile.com/quotes/john-hull/we-concluded-that-you-cannot-rely-on-delta-hedging-alone-it-sounds/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [We started giving presentations at practitioner conferences in 1986, and since then all of our derivatives research has been stimulated by contact with practitioners.](https://sms4smile.com/quotes/john-hull/we-started-giving-presentations-at-practitioner-conferences-in-1986/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [Our research led on to other things, such as the fact that exchange rates are not lognormally distributed.](https://sms4smile.com/quotes/john-hull/our-research-led-on-to-other-things-such-as-the-fact-that-exchange/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [There are challenges in terms of the measurement of VAR for what are known as nonlinear derivatives, where things like gamma and vega are…](https://sms4smile.com/quotes/john-hull/there-are-challenges-in-terms-of-the-measurement-of-var-for-what-are/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [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,…](https://sms4smile.com/quotes/john-hull/if-each-of-your-time-steps-is-one-week-long-you-are-not-modeling-the/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [Yes, our tree has an interesting shape. The center branches reflect the shape of the zero curve. When extreme parts of the tree are…](https://sms4smile.com/quotes/john-hull/yes-our-tree-has-an-interesting-shape-the-center-branches-reflect-the/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [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…](https://sms4smile.com/quotes/john-hull/the-real-challenge-was-to-model-all-the-interest-rates-simultaneously/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [I think VAR is a very healthy development within the industry.](https://sms4smile.com/quotes/john-hull/i-think-var-is-a-very-healthy-development-within-the-industry/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

> [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…](https://sms4smile.com/quotes/john-hull/in-the-interest-rate-area-traders-have-for-a-long-time-used-a-version/)

[John Hull](https://sms4smile.com/quotes/author/john-hull/)

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