Financial modeling
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Computation of corporate finance problems, standard portfolio problems, option pricing and applications, and duration and immunization.
The central aim of all financial modeling is valuation under uncertainty: how do you estimate the value of a security when its future trajectory, or the trajectory of the other securities or economic variables it depends on, is unknown. Among other problems, financial modeling tackles the tasks of calculating cost of capital, risk modeling, real options, early exercise boundaries, and modeling the term structure of interest rate and credit spread.