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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

Basic math operations – addition, subtraction, multiplication, and division

For basic math operations in Python, we use the conventional mathematical operators +, -, *, and /. These operators represent plus, minus, multiplication, and division operations respectively. All these operators are embedded in the following line of code:

>>>3.09+2.1*5.2-3/0.56
8.652857142857144

Although we use integer division less frequently in finance, a user might type the division sign twice (//) accidentally to get a weird result. The integer division is done with double slash //, which would return an integer value that is the largest integer than the final output. The result of 7 divided by 3 is 2.33, and 2 will be the largest integer smaller than 2.33. This example is shown in the following code:

>>>7/3
2.3333333333333335

For Python 2.x versions, 7/3 could be 2 instead of 2.333. Thus, we have to be careful. In order to avoid an integer division, we could use 7/2 or 7/2., that is...

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Python for Finance
Published in: Apr 2014
Publisher:
ISBN-13: 9781783284375
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