Financial Toolbox

Preface

Introducing the Financial Toolbox

MATLAB^® and the Financial Toolbox provide a complete integrated computing environment for financial analysis and engineering. The toolbox has everything you need to perform mathematical and statistical analysis of financial data and display the results with presentation-quality graphics. You can quickly ask, visualize, and answer complicated questions.

In traditional or spreadsheet programming you must deal with all sorts of housekeeping details: declaring, data typing, sizing, etc. MATLAB does all that for you. You just write expressions the way you think of problems. There is no need to switch tools, convert files, or rewrite applications.

With MATLAB and the Financial Toolbox, you can:

• Compute and analyze prices, yields, and sensitivities for derivatives and other securities, and for portfolios of securities.
• Perform Securities Industry Association (SIA) compatible fixed-income pricing, yield, and sensitivity analysis.
• Analyze or manage portfolios.
• Design and evaluate hedging strategies.
• Identify, measure, and control risk.
• Analyze and compute cash flows, including rates of return and depreciation streams.
• Analyze and predict economic activity.
• Create structured financial instruments, including foreign-exchange instruments.
• Teach or conduct academic research.

Using This Guide