SOFTWARE FOR MATHEMATICAL ANALYSIS OF FINANCIAL MARKETS AND PRICE BEHAVIOUR

In this software, some mathematical finance are discussed, starting with the financial market and going to different valuation models for different kind of financial instruments and also, the study of the time value of a single cash flow in which software are developed to determine how the future value will look like after some certain years of interests. Most important aspect of this work is the price behaviour in the financial market in which graphical representation of the price behaviour are discussed theoretically.

GOALS AND OBJECTIVES OF THE SOFTWARE

The goals and objectives of this work are:

1.                 To analyze historical changes in price which provide important information for future movements.

2.                 Helps to predict future prices trends (a general tendency).

3.                 Helps mathematicians to have a better understanding of finance.

4.                 Helps mathematicians to understand the market and how to use different numbers and formulas for our own good.

5.                 Mathematical finance helps people deal with investment and money.

6.                 Helps financier to have a deeper knowledge regarding the mathematical thought that goes together with financial issues.

7.                 The importance of mathematics in finance is amazingly high and we have to understand where everything comes from.

Futures of the Software

The software development was strictly on the following:

1. Inflation premium: That shows the real interest rate.

2. Time value of a single cash flow: That shows the Future Value.

3. The equivalence of the interest rate.

4. Unknown interest rate according to maturity: That shows the    interest of a certain period.