quantitative finance
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Binomial options pricing model
The ability to price derivatives accurately and efficiently is paramount. The binomial pricing model is one of the most widely used methods for option pricing, providing a structured approach to evaluating potential outcomes under various market conditions. With its powerful…
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Macroeconomic decision-making
Macroeconomic events are pivotal in influencing market dynamics. Understanding and responding to these events can make the difference between profit and loss for investment professionals. Python, with its extensive ecosystem and user-friendly capabilities, has become a go-to tool for quantitative…
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Approximations – Taylor series – Gordon Growth Model
In investment management, precision and efficiency are paramount when analysing how market variables impact stock prices. The Taylor series, a powerful mathematical tool, provides a robust framework for understanding price sensitivities and convexity effects. One application for the Taylor series…
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Portfolio optimisation – Linear algebra
Making investment decisions based on intuition or limited data can often lead to suboptimal outcomes. Quantitative analysis revolutionises how investors and portfolio managers approach asset allocation, enabling precise, data-backed strategies that optimise returns while controlling risks. One example of this…