Stochastic Methods For Finance

Seven projects in stochastic methods for finance: 1: The results obtained using the binomial model to price a call option will be compared with the price provided by Yahoo Finance; 2: The implied dividends at different times of maturity will be studied to deduce the term structure; 3: The convergence of the binomial model to the Black-Scholes formula will be studied and compared with the results from the Leisen-Reimer method (1996); 4: An analysis of the Greeks from a theoretical perspective will examine the effects of an increase in volatility on the market; 5: Analysis of the Greeks from an empirical point of view in the case of Western Digital Corporation (WDC); 6: The aim is to develop an option pricing tool based on the Monte Carlo simulation approach; 7: The study will focus on parametric, historical, or simulated Value at Risk using real data.

All these works were conducted using Excel.