Python for Finance

In the world of finance, the Black-Scholes-Merton model stands out as a pivotal tool for pricing options. Lets create the Black Scholes model in Python. Developed through rigorous mathematical derivations, this model calculates the theoretical value of an option based on five essential parameters: Underlying Price (S): The current market price of the asset. Strike […]

https://youtu.be/9GA2WlYFeBU Portfolio Optimization is an essential aspect of modern investing, and Modern Portfolio Theory (MPT) is a well-known approach to achieve an optimal portfolio. In this article, we will walk through a Python Portfolio Optimization script that demonstrates how to optimize a portfolio of stocks using MPT. We will use Yahoo Finance data and the […]

In this blog article, we will demonstrate how to calculate the Value at Risk (VaR) for a portfolio of stocks using the parametric method, also known as the variance-covariance method. The parametric method estimates VaR by assuming that portfolio returns follow a normal distribution. We will use Python and the yfinance library to download historical […]