Next: Financial Time Series Analysis
Fixed-Income Analysis and Option Pricing
Cash Flow Analysis
Financial Toolbox offers time-value-of-money functionality to:
- Calculate present and future values
- Determine nominal, effective, and modified internal rates of return
- Calculate amortization and depreciation
- Determine the periodic interest rate paid on a loan or annuity
Basic SIA-Compliant Fixed-Income Security Analysis
The toolbox provides Securities Industry Association or SIA-compatible analytics are provided for pricing, yield curve modeling, and sensitivity analysis for government, corporate, and municipal fixed-income securities. Specific analytics include:
- Complete cash flow date, cash flow amounts, and time-to-cash-flow mapping for a bond
- Price and yield maturity
- Duration and convexity
You can price stepped and zero coupon bonds with Financial Instruments Toolbox™.
Basic Black-Scholes, Black, and Binomial Option-Pricing
With Financial Toolbox, you can:
- Use a standard market model of equity pricing with Black and Black-Scholes formulas
- Compute the sensitivities of option greeks, such as lambda, theta, and delta
With Financial Instruments Toolbox, you can price equity and fixed-income derivatives using a range of models and methods, including Heath-Jarrow-Morton and Cox-Ross-Rubinstein binomial models.
Plot showing the option greeks gamma (z-axis height) and delta (color) for a portfolio of call options.