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Table of Contents
Python for Finance
Credits
About the Author
Acknowledgments
About the Reviewers
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Preface
Why Python?
A programming book written by a finance professor
Small programs oriented
Using real-world data
What this book covers
What could you achieve after reading this book?
Who this book is for
Conventions
Two ways to use the book
Reader feedback
Customer support
Downloading the example code
Downloading the color images of this book
Errata
Piracy
Questions
1. Introduction and Installation of Python
Introduction to Python
Installing Python
Different versions of Python
Ways to launch Python
Launching Python with GUI
Launching Python from the Python command line
Launching Python from our own DOS window
Quitting Python
Error messages
Python language is case sensitive
Initializing the variable
Finding the help window
Finding manuals and tutorials
Finding the version of Python
Summary
Exercises
2. Using Python as an Ordinary Calculator
Assigning values to variables
Displaying the value of a variable
Error messages
Can't call a variable without assignment
Choosing meaningful names
Using dir() to find variables and functions
Deleting or unsigning a variable
Basic math operations – addition, subtraction, multiplication, and division
The power function, floor, and remainder
A true power function
Choosing appropriate precision
Finding out more information about a specific built-in function
Listing all built-in functions
Importing the math module
The pi, e, log, and exponential functions
"import math" versus "from math import *"
A few frequently used functions
The print() function
The type() function
Last expression _ (underscore)
Combining two strings
The upper() function
The tuple data type
Summary
Exercises
3. Using Python as a Financial Calculator
Writing a Python function without saving it
Default input values for a function
Indentation is critical in Python
Checking the existence of our functions
Defining functions from our Python editor
Activating our function using the import function
Debugging a program from a Python editor
Two ways to call our pv_f() function
Generating our own module
Types of comments
The first type of comment
The second type of comment
Finding information about our pv_f() function
The if() function
Annuity estimation
Converting the interest rates
Continuously compounded interest rate
A data type – list
Net present value and the NPV rule
Defining the payback period and the payback period rule
Defining IRR and the IRR rule
Showing certain files in a specific subdirectory
Using Python as a financial calculator
Adding our project directory to the path
Summary
Exercises
4. 13 Lines of Python to Price a Call Option
Writing a program – the empty shell method
Writing a program – the comment-all-out method
Using and debugging other programs
Summary
Exercises
5. Introduction to Modules
What is a module?
Importing a module
Adopting a short name for an imported module
Showing all functions in an imported module
Comparing "import math" and "from math import *"
Deleting an imported module
Importing only a few needed functions
Finding out all built-in modules
Finding out all the available modules
Finding the location of an imported module
More information about modules
Finding a specific uninstalled module
Module dependency
Summary
Exercises
6. Introduction to NumPy and SciPy
Installation of NumPy and SciPy
Launching Python from Anaconda
Examples of using NumPy
Examples of using SciPy
Showing all functions in NumPy and SciPy
More informatio...
