Numerical Techniques in Finance
Numerical Techniques in Finance is an innovative book that shows how to create, and how to solve problems in a wide variety of complex financial models. All the models are set up using Lotus 1-2-3; some of the advanced models also make use of Lotus macros.
Using the models set out in the book, students and practicing professionals will be able to enhance their evaluative and planning skills. Each of the models is preceded by an explanation of the underlying financial theory. Exercises are provided to help the reader utilize the models to create new individualized applications.
Numerical Techniques in Finance covers standard financial models in the areas of corporate finance, financial statement simulation, portfolio problems, options, portfolio insurance, duration, and immunization. A separate section of the book reviews the relevant mathematical and Lotus 1-2-3 techniques. Each of the book's five parts begins with a succinct overview.
Simon Benninga is on the faculty of the School of Business Administration of the Hebrew University. He has been Visiting Professor of Finance at the University of Pennsylvania's Wharton School and at the Graduate School of Management at UCLA.
About the Author
The late Simon Benninga was Professor of Finance and Director of the Sofaer International MBA program at the Faculty of Management at Tel-Aviv University. For many years he was a Visiting Professor at the Wharton School of the University of Pennsylvania.
“This excellent book shows how to incorporate into a spreadsheet program, like Lotus, the sometimes theoretical constructs of modern finance. In the process of working through this book, the reader will gain an intuitive understanding of modern finance and, as a bonus, a thorough knowledge of Lotus.”
—Marshall E. Blume, Howard Butcher III Professor of Financial Management, Wharton School, University of Pennsylvania
“An invaluable addition to the libraries of students, academics, and especially practitioners. Modern numerical techniques are being used to a growing extent in the practice of finance and Benninga’s book provides a much-needed and overdue reference for financial engineering.”
—Richard Roll, Allstate Professor of Finance and Insurance, University of California, Los Angeles
“I have used several sections from this book in graduate-level investment classes over the last two years. The hands-on approach of both the text and, especially, the 1-2-3 algorithms prove to be very valuable in enhancing students’ understanding of complex financial models.”
—Donald Keim, Associate Professor of Finance, Wharton School, University of Pennsylvania
“Finance should be a practical rather than a theoretical subject. Simon Benninga’s book is one of the first to translate theory into practice using Lotus 1-2-3.”
—Richard C. Stapleton, Wolfson Professor of Finance, Lancaster University