Summary
In this chapter, we have discussed one of the most important properties of Python: modules. A module is a package written by an expert or any individual to serve a special purpose. The knowledge related to modules is essential in our understanding of Python and its application to finance. In particular, we have introduced and discussed the most important modules, such as NumPy, SciPy, matplotlib
, statsmodels
, pandas
, and pandas_reader
. In addition, we have briefly mentioned module dependency and other issues. Two financial calculators written in Python were also presented. In Chapter 3, Time Value of Money, we will discuss many basic concepts associated with finance, such as the present value of one future cash flow, present value of perpetuity, present value of growing perpetuity, present value of annuity, and formulas related to future values. In addition, we will discuss definitions of Net Present Value (NPV), Internal Rate of Return (IRR), and Payback period. After that, several...