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Python for Finance

You're reading from   Python for Finance If your interest is finance and trading, then using Python to build a financial calculator makes absolute sense. As does this book which is a hands-on guide covering everything from option theory to time series.

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Product type Paperback
Published in Apr 2014
Publisher
ISBN-13 9781783284375
Length 408 pages
Edition 1st Edition
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Author (1):
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Yuxing Yan Yuxing Yan
Author Profile Icon Yuxing Yan
Yuxing Yan
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Table of Contents (14) Chapters Close

Preface 1. Introduction and Installation of Python FREE CHAPTER 2. Using Python as an Ordinary Calculator 3. Using Python as a Financial Calculator 4. 13 Lines of Python to Price a Call Option 5. Introduction to Modules 6. Introduction to NumPy and SciPy 7. Visual Finance via Matplotlib 8. Statistical Analysis of Time Series 9. The Black-Scholes-Merton Option Model 10. Python Loops and Implied Volatility 11. Monte Carlo Simulation and Options 12. Volatility Measures and GARCH Index

Summary

In this chapter, many concepts and issues associated with statistics are discussed in detail. Topics include how to download historical prices from Yahoo! Finance; estimate returns, total risk, market risk, correlation among stocks, and correlation among different country's markets; form various types of portfolios; estimate a portfolio variance-covariance matrix; construct an efficient portfolio, and an efficient frontier; and estimate the Roll (1984) spread, Amihud's (2002) illiquidity, and Pastor and Stambaugh's (2003) liquidity.

Although in Chapter 4, 13 Lines of Python Code to Price a Call Option, we discuss how to use 13 lines to price a call option based on the Black-Scholes-Merton model even without understanding its underlying theory and logic. In the next chapter, we will explain the option theory and its related applications in more detail.

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