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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
Languages
Tools
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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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Toc

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

Understanding a for loop

A for loop is one of the most used loops in many computer languages. The following flow diagram demonstrates how a loop works. Usually, we start with an initial value. Then, we test a condition. If the condition is false, the program stops. Otherwise, we execute a set of commands:

Understanding a for loop

The simplest example is given as follows:

>>>for i in range(1,5):
      print i

Running these two lines will print 1, 2, 3, and 4. We have to be careful with the range() function since the last number, 5, will not be printed in Python. Thus, if we intend to print from 1 to n, we have to use the following code:

>>>n=10
>>>for i in range(1,n+1):
      print i

In the previous two examples, the default incremental value is 1. If we intend to use an incremental value other than 1, we have to specify it as follows:

>>>for i in xrange(1,10,3):
      print i

The output values will be 1, 4, and 7. Along the same lines, if we want to print 5 to 1, that is, in descending...

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