Dr. Chance did a excellent job in carefully introducing the concept and outline of derivatives markets to students with basic business school training. I used the 4th edition in my undergraduate course couple years ago, and built up a solid conceptual understanding in this field. The newest version still keep its pleasant style and contain some thing more about risk management.
This book offers the best introduction to undergraduate business school students or MBA student who need not to work with financial derivatives much.
But for those non-business students wants get into mathematical finance industry, to buy a book only for concept intro may not a economy choice. Refer this book if you find the first half in Hull's "Option, futures and other derivatives" not clear enough.

If you are a student just taken up a course in derivatives or risk management you should have this book. if you find john hull more technical, you have Don Chance who covers options and other derivatives in a greater detail and in more words. everything you want to know about how banks etc have risk mangaement systems in place and market risk instruments is here.

in case you want a greater coverage of options and pricing options, you should definatly take a look at Black Scholes and Beyond by Neil Chriss, a work of art.

This is an excellent book for non finance majors who would like to grasp the physical concepts behind different derivatives products traded in the OTC markets. The book is ideal for a preperation read for all aspiring to take Financial Engineering / Derivatives as majors in graduate programs.

This is a wonderful book to have on your shelf for any finance major looking for an understanding of options, futures, and other types of contracts sold in the OTC and exchange markets. The text is fairly easy to follow and provides good examples to help students understand the theories behind option and future markets.

However, I do not feel that this book is for just anyone. Without some financial background I think that this book can be difficult to follow. It is hard to understand the mathmatics behind the theories presented in the text. The diskette is also somewhat disappointing as an aid for understanding the material. The disk only gives Excel generated financial models that you find in the book such as the Black-Shcoles pricing model.

With a good professor, this is a wonderful aid in constructing a foundation for option investing and pricing. And even giving some of its downfalls I would still recommend buying this book.