Wednesday, June 26, 2013
Option Pricing - Monte Carlo
Monte Carlo Methods are used in finance and mathematical finance to value and analyze (complex) instruments, portfolios and investments by simulating the various sources of uncertainty affecting their value, and then determining their average value over the range of resultant outcomes. Here Monte Carlo Simulation Method is used for determining option price for European Option.
Option Pricing - Black-Scholes Model
Black–Scholes–Merton is a mathematical model of a financial market containing certain derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives the price of European-style options.
Option Pricing - Binomial Model with VBA
The Binomial Options Pricing Model (BOPM) provides a generalizable numerical method for the valuation of options. The binomial model was first proposed by Cox, Ross and Rubinstein (1979). Essentially, the model uses a “discrete-time” (lattice based) model of the varying price over time of the underlying financial instrument. In general, binomial options pricing models do not have closed-form solutions. This template use VBA (macro) to calculate model.
Option Pricing - Garman-Kohlhagen
Garman-Kohlhagen is a formula for estimating the value of a European call option on foreign exchange. It assumes the risk-free interest rate (being paid on the foreign currency) as a continuous dividend yield, and avoids the Black Scholes option pricing model's assumption that borrowing and lending takes place at the same interest rate.
Net Worth Calculator
This template is prepared for individual net worth calculations. The form is flexible in types of assets and liabilities.
Effective Rate Calculator
This is template is prepared for calculating the effective annual rates based on the frequency of compounding (semi-annual, quarterly, monthly, daily or continuous). Curves of the rates for 5 frequencies are displayed on a chart.
Monday, June 10, 2013
Capital Budgeting
This template is prepared for comparing mutually independent (up to 5) projects(options). Net Present Values (NPV) and Internal Rates of Return are calculated and cash flows are simulated. Also an incremental IRR analysis is carried out, displaying the best option.
Personal Investment Log
This template is prepared to keep track of personal investments. Investment type list is flexible. Also a report on the investment position is displayed on the second sheet including the gain/loss analysis for different investment types. PSW version of the template provides save feature. Hence, a collection of logs can be created and saved by the name of the individual. Saved logs are editable online.
Quick Budget
This template is prepared for evaluating personal budget. The data may be entered with any frequency. 2 charts displaying the final balance and spending distribution to main categories are provided.
Portfolio Performance Monitoring
The Portfolio Performance Monitoring template enables the ongoing monitoring and periodic valuation of a portfolio of investments. The template allows the entering of investment transactions during a reporting period to calculate performance. Furthermore, incremental investment transactions undertaken during a period are fully accounted for in the period's performance calculations. Roll over of the model and archiving of transactions make this template ideal for monitoring your portfolio of financial investments on an ongoing basis.
Option Pricing - Barrier Options
This template use the formulas provided by John Hull to value barrier option when the barrier is less than the striking price.
Option Pricing - Binomial Model
The Binomial Options Pricing Model (BOPM) provides a generalizable numerical method for the valuation of options. The binomial model was first proposed by Cox, Ross and Rubinstein (1979). Essentially, the model uses a “discrete-time” (lattice based) model of the varying price over time of the underlying financial instrument. In general, binomial options pricing models do not have closed-form solutions.
Investment Model
This template is a simple investment model that may be used for analyzing a single investment. Straight line, declining balance and sum of the years' digits methods may be used for depreciation. Initial inputs and projected growth rates are entered by the users to simulate the value and projected operating cash flows of the investment.
Flexible Balance Sheet
This is a sample balance sheet which is flexible in current asset types, fixed asset types, other asset types, current liability types and long-term debt type. Also 4 types of analysis are provided. You can select any of them that you want to display on the sheet.
Cash Flow Projection
This tempate is prepared for tracking or projecting cash flows over 12 months. A cash flow chart and a Pareto chart pointing the largest 5 expenditures. SpreadsheetWEB version of the template provides save and single record application features. These features allow to create an online file that can be displayed and edited.
Statements for Banks
This template is used for creating the statements of banks. It contains "Financial Position", "Operations and Changes" and "Cash Flow" statements. SpreadsheetWEB version of the template allows to publish the statements online easily.
Break-Even Analyzer
This template evaluates the Break-Even point of your case over a specified horizon. Also, a simulation of your expected sales and a chart of your fixed costs, variable costs and revenues are provided.
Waterfall Forecast
A waterfall forecast creates an environment of accountability and allows a manager to determine key trends. This template provides a waterfall forecast over a planning horizon of 12 months. PSW version of the template provides save feature. Hence, the forecast file can be saved and edited online.
Lifetime Savings Calculator
This template is prepared to emphasize the impact of using a cheaper product brand rather than the one you are using currently in long term savings. SpreadsheetWEB version of the calculator provides all features of the template and it may be placed and used online.
Weekly Personal Budget (3 Months)
This is a personal budget which contains weekly incomes and expenses for 3 months. Types of the expenses can be edited by the user. A Pareto analysis of the expense types is carried out. SpreadsheetWEB version of the calculator provides all features of the template and it may be placed and used online. "Single Record Application" feature allows to edit and save your budget online.
Daily and monthly expense tracker
This is the updated version of my previous template, includes both daily as well monthly expense tracker which allows you for better budget. Please see all the sheets as i have added the tracker for both one and two income sources. If any alteration of requests requires than kindly comment.
Portfolio Optimization
The Portfolio Optimization template calculates the optimal capital weightings for a basket of investments that gives the highest return for the least risk. The unique design of the template enables it to be applied to either financial instrument or business portfolios. The ability to apply optimization analysis to a portfolio of businesses represents an excellent framework for driving capital allocation, investment, and divestment decisions.
EOQ Model
This is a template for EOQ Model analysis for simple inventory systems. The template also allows to compare EOQ with any other quantity displaying the resulting costs.
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