Teaching mathematical finance is sometimes so boring, since it may involve too much tedious computations in the class. Recently, I showed in my class some computations using R by online programing platform R-Fiddle. I find many advantages in this way: (1) Students had great interests in this simple but powerful language; (2) It saves my teaching time; (3) R is completely free, not like MATLAB or SAS.
In this below, I will give some applications and gradually update in the future. I am not a programmer and you are welcome to send me any of your suggestions.
- Reading stock price from Yahoo Finance
- 1-Step Binomial: BinP1()
- Black function: Bl()
- Black Scholes formula: BS()
- Bond option pricing: ZBOFwd()
- Caplet pricing: Cpl()