This repository presents several intermediate to advanced projects in the field of financial engineering. Topics such as portfolio optimization, risk management, options pricing, and derivatives are thoroughly explored in these projects. The projects were developed in MATLAB and apply modern financial theories alongside mathematical modeling techniques through practical examples.
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Markowitz Portfolio Optimization: The classical MVO model is used to calculate the optimum portfolio allocations that balance risk and return.
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Black-Litterman Model: An advanced portfolio management model that incorporates investor views and market expectations in the optimization of portfolio weights.
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Risk Parity Optimization: This approach ensures that each asset contributes equally to the total risk of a portfolio.
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Option Pricing: European-style options are priced using the Black-Scholes and Heston models.
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Monte Carlo Simulation: Uncertainty simulations are employed to solve pricing and risk analysis problems in financial models.
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Delta Hedging: A strategy used to manage option portfolios against small price changes.
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NPV (Net Present Value): A financial model used to calculate the present value of future cash flows, typically employed to evaluate project profitability.
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Schedules of Loan Repayments: Annuity models are used to determine loan repayment amounts.
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Sensitivity Analysis: Shows the effects of changes in discount rates or cost-benefit parameters on the profitability of a project.