That's why I only got to know the existence of

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Mathematica Home Edition gives home users Mathematica's powerful technology, developed over 20 years and used by Nobel-winning scientists and leading corporations. It provides access to curated data, makes it easy to create and share interactive applications, and a whole lot more.

It can be used for:

Calculate mortgage, credit card, car, and student loan payments

Evaluate currency exchange rates

Monitor stock market returns and predict trends

And much more...

Evaluate currency exchange rates

Monitor stock market returns and predict trends

And much more...

In short words, Mathematica Home Edition contains the same functions that can be found in Wolfram's Mathematica 7.

How much does it cost? $295, if you think $295 is a lot, please keep in mind the full non-student version is $2500!! Sounds a good deal? Start to Import, visualize and calculate using built-in financial data with Mathematica Home Edition.

Tags - mathematica

A couple of weeks ago one of my friends had an interview at a local hedge fund and he had to prepare Greeks of exotics, so we decided to plot them. In Uwe Wystup’s book, Options in FX markets there is a nice and very clear analytical solution, and mathematica 7 is good in symbolic so the code just takes the derivatives and plots them. Also to check the solution of down and out call we plotted the down and in call and their payoff combines into a regular call so that there wasn’t a mistake. If you do not have mathematica there is a mathematica free file viewer form Wolfram.

Together with the codes there is a mini manipulate idea where you can see the interaction of the Greeks with other input parameters such as a Barrier where you see that the delta explodes when you are close to expiry and to the barriers. Uwe Wystup suggests that then one should do a barrier shift to prevent this so that one should rehedge your portfolio based on that shifted barrier. If you are interested to see this please download the attached Mathematica files and check it out.

Click to download

Tags - barrier , option

download stable distribution software at http://www.mathestate.com/tools/Financial/sw/Software.html

Tags - stable , distribution

http://leippold.googlepages.com/matlab

Tags - sobol , simulation

A simple and numerically stable 2-term partial differential equation characterizing the price of any type of arithmetically averaged Asian option is given. The approach includes both continuously and discretely sampled options and it is easily extended to handle continuous or discrete dividend yields.

The paper "Unified Asian Pricing", Risk, Vol. 15, No. 6, 113-116 and its Mathematica nb file can be downloaded at http://www.stat.columbia.edu/~vecer/.

Tags - asian , option

here is the introductory page and downloading link, have fun and enjoy new week.

http://www.cs.uiowa.edu/~sriram/Combinatorica/

Tags - mathematica