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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 2. Using Python as an Ordinary Calculator FREE CHAPTER 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 while loop

In the following program, the first line assigns an initial value to i. The second line defines a condition for? when the while loop should stop. The last one increases the value of i by 1. The i+=1 statement is equivalent to i=i+1. Similarly, t**=2 should be interpreted as t=t**2:

i=1
while(i<=4):
    print(i)
    i+=1

The key for a while loop is that an exit condition should be satisfied at least once. Otherwise, we would enter an infinitive loop. For example, if we run the following scripts, we would enter an infinitive loop. When this happens, we can use Ctrl + C to stop it:

i=1
while(i!=2.1):
    print(i)
    i+=1

In the previous program, we compare two real numbers for equality. It is not a good idea to use the equals sign for two real/float/double numbers. The next example is related to the famous Fibonacci series: the summation of the previous two numbers is the current one:

Understanding a while loop

The Python code for computing the Fibonacci series is given as follows:

def fib...
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