Introduction

• Metodology & Formats
• Multiplication Tables

Time Value of Money

• The Effects of Compounding
• Present and Future Value of a Growing Annuity
• Mortgage Model
• Bubble Charts

Financial Statement Forecasting

• Financial Statement Models
• Forecasting
• Forecasting with Short Term Debt and Cash as the Plug
• Forecasting with Capital Structure as the Plug
• Sensitivity Analysis
• Scenario Analysis
• WACC, growth, and Discounted Free Cash Flow Analysis

Comparables Models

• In range Charts: Thermometers, Simple and Complex Football charts
• Importing Data from Capital IQ
• Comparables Charting

Bond Prices

• Pricing Bonds on the Yield Curve
• One period Bond pricing under risk of default
• Manipulating the Ratings Transition matrix
• Expected Yields with Ratings transitions, Recovery Rates, and partial periods
• Calculating Bond Beta

Monte Carlo Methods

• Random Numbers and Monte Carlo Methods
• Statistics
• Market Making in a gambling model

Stock Price Distribution

• Estimating daily price volatility and mapping distributions
• Simulating Stock prices with a simple Markov process
• How Normal is a simple Markov process?

Value at Risk

• Value at Risk (single distribution)
• Value at Risk with three assets
• Value at Risk as compared to the Efficient Portfolio Frontier

Options

• Binomial Pricing Model
• Black Scholes Pricing Model
• Implied volatility
• Using Live Interactive quotes to analyze mispricing in options with a single underlying stock.

Portfolio Attribution

• Sector Attribution
• Stock Level Attribution
• Multi-period Stock Level Attribution with transactions

Hedge Strategies with Futures Contracts

• Embedding live interactive quotes from the CBOT to analyze futures contracts
• Using the S&P Future to hedge equity portfolios
• Strip & Stack Hedges using Eurodollar contracts