Python: Data Analytics and Visualization

Summary

This chapter discussed typical financial examples and looked at machine learning towards the end. A brief introduction to the deterministic model using gross profit analysis and savings in mortgage payments was discussed.

Using real-world data in the form of options, the implied volatilities of European call options on the VSTOXX volatility index was also discussed. We also looked at Monte Carlo simulation. Using different implementation approaches, we showed simulation methods using the Monte Carlo method, the inventory problem, and a basketball situation.

Further, you learned simulation models (such as geometric Brownian and the diffusion-based simulation) with the example of the stock market model. The chapter also focused on how diffusion ...