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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

Understanding how to use matplotlib

The best way to understand the usage of the matplotlib module is through examples. The following example could be the simplest one since it has just three lines of Python code. The objective is to link several points. By default, the matplotlib module assumes that the x axis starts at zero and moves by one on every element of the array. The following command lines illustrate this situation:

>>>from matplotlib.pyplot import *
>>>plot([1,2,3,10])
>>>show()

After we press the Enter key after typing the last command of show(), the following graph will appear:

Understanding how to use matplotlib

At the bottom of the graph, we can find a set of icons, and based on them, we could adjust our image and other functions, such as saving our image. After closing the preceding figure, we could return to Python prompt. On the other hand, if we issue show() the second time, nothing will happen. To repeat the preceding graph, we have to issue both plot([1,2,3,10]) and show().

We...

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