
Value futures and options by modeling stock prices and using Monte Carlo simulations, Black-Scholes formulas, and no-arbitrage principles in Excel.
Convert frequencies to probabilities across 10, 20, and 40 bins, revealing bell-shaped distributions that shrink with finer bins, while emphasizing probability density as stable across binning for continuous distributions.
Explore how logarithms transform percentage returns into log returns, enabling a natural rate of change to model continuous growth or decay in stock prices.
Use the probability density function to derive probabilities for continuous distributions by binning and multiplying density by bin width, with a normal density model and area under curve equals one.
Model random spinning with a pseudo-random number generator using a seed, multiplier, and divisor to produce location numbers from 0 to 1, and convert results via Excel modulo.
Learn how a linear congruential generator uses a multiplier and added constant with a time-based seed to generate varied random sequences for stock price modeling, comparing with Excel RAND.
How do we analyze data when they are simple, and 'deterministic'? What end results are we seeking?
What if data is still simple, but now, they are random now?
Compute e from a binomial expansion of n period growth, using factorial series and inverse factorials to reveal the limit e, then relate continuous growth and compound interest to e.
Apply the no arbitrage principle to value futures and options, deriving fair prices from the spot price and interest, and understand how arbitrage drives equilibrium between future and spot prices.
What learning experience can beat learning through real life application? In this course you will acquire various knowledge in math, probability theory, Excel modeling, Financial engineering all at once! You will see how various tools are brought together to solve a real problem in Wall Street -- option pricing. If you want to see how math can be useful in real life, if you want to gain some Excel modeling skills, or if you want to switch into quant finance, this is a perfect course for you! This course is beginner friendly, as it will explain everything step by step.
The problem with school curriculum is its unnatural way of grouping subjects. It’s based on an assembly line approach that’s unfit for human brains. Real life problems don’t present themselves in a clean cut mode, different areas are mingled together all at once. It’s hard to learn math when you don’t have the contexts, it’s hard to gain Excel skills if there is no real model to work on, it’s hard to learn quant finance if you don’t understand the math behind.
Knowledge taught in isolation can hardly be put together, that’s why most of us suffer in school. For those who survive, it’s mostly likely they know how to connect things. You will learn so much more when knowledge are connected! So we make this integrated course for those who want to really understand the principles behind rather than simply performing chores. It will give you an integrated learning experience you’ve never encountered before!