Training Course Outlines:

Mathematical concepts
This workshop begins by examining the following core mathematical functions and concepts often used in finance:
• The power function
• Sensitivity, gradient, rate of change and curvature
• Interpolating and extrapolating
• Growth and measures growth
• Randomness and measures of randomness
• Frequency distributions
• Mean, standard deviation, variance and correlation
• Confidence intervals
• The exponential and logrithmic function
• Iteration

Finance concepts
The mathematics of the preceding section is applied in order to model and work with the following finance concepts
• The yield curve
• Present value, future value and discounting
• Asset price evolution
• Forward pricing
• Hedging
• Arbitrage
• Internal rate of return
• Inflation
Financial mathematics - useful spreadsheet features
This section reviews spreadsheet tools and function that are often applied in financial mathematics
• Spreadsheet financial functions
• Statistical and analytical functions
• Charting tools
The mathematics of financial producst
In this section the following classes of financial products are examined
• Bonds (fixed and floating)
• Swaps
• Forward and futures contracts
• Vanilla and exotic dervatives
For these classes of products we show how mathematics can be used in:
• Pricing
• Measuring risk exposures and durations
• Hedging
• Defining relationships between products
• Engineering new products from exisiting ones

Training Course Outcomes:

Framing this workshop in a spreadsheet format confers the following benefits:
• Spreadsheets provide the computing power to use techniques - like iteration and simulation
- that are unfeasible or too tedious to be performed by hand or on calculators
• Spreadsheets provide extensive charting tools. Charts are useful in visualising and interpreting patterns, trends, features and anomalies in mathematics functions.
• Spreadsheets make it easy to perform sensitivity analysis, to "stree-test" mathematical formulae and determine thier behaviours in extreme conditions
• Spreadsheets can act as an independent "reality check" on numbers generated by theory or by other methods
• Many finance practitioners use spreadsheets day-to-day in thier roles
• Spreadsheets contain many useful powerful mathematical and financial functions.

Course Accreditations:

Course Prerequisites:

• Participants should be able to use absolute and relative dressing in Excel and be able to enter mathematical formulae into cells.
• Participants should understand and be able to apply the concepts and discounting, present and future value and simple and compound interest.

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