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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

Writing a program – the empty shell method

To vividly describe this method, we call it the empty shell method. The method works like this: generate an empty shell first and test it, then add one line and test it. If there is no error, add one more line and test the program. Repeat this procedure until you finish the whole program. The CND function is used as an example in the following case:

  1. After launching Python, click on File then New Window Ctrl + N. Generate the following empty shell:
    def CND(x):
        return x
    
  2. Click on File | Save; for example, save it as cnd.py.
  3. Click on Run and then click on Run from module F5. The following line will appear:
    >>>===========RESTART ==================
  4. To test our program, we will enter various values. If we enter 1, the output would be 1. If we enter 5, then the output will be 5, as shown in the following example:
    >>>CND(1)
    1
    
  5. We add one line as shown in the following code:
    def CND(x):
        (a1,a2,a3,a4,a5)=(0.31938153,-0.356563782...
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