The seminar looks at solving implicit equations (e.g. the Black-Scholes formula for implied volatility), lattice methods, finite differences and simulation. Financial applications include option valuation and estimating the ‘Greeks’ for complex options.

 

At the end of Intrinsic Value's training seminar in numerical methods the participant should be able to:

􀂅  Demonstrate the Bisection method for solving Non-differential Equations.

􀂅  Demonstrate   the   Newton-Raphson   method   for   solving  Non-differential

     Equations.

􀂅  Describe the application of Goal Seek equation solver in Excel.

􀂅  Demonstrate Unconstrained Numerical Optimisation.

􀂅  Demonstrate Constrained Numerical Optimisation.

􀂅  Demonstrate Binomial Lattices for valuing options.

􀂅  Demonstrate Finite Difference Methods for valuing options.

􀂅  Demonstrate Simulation using Excel.