Python Financial Models

A collection of core financial and quantitative models implemented in Python, including corporate finance and derivatives pricing tools.

Tested on Arch Linux using the Pycharm Community Edition

This repository is intended for:

• Finance students
• Analysts
• Quantitative finance beginners
• Anyone interested in financial modeling with Python

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📌 Models Included

1. CAPM (Capital Asset Pricing Model)

Calculates the expected return of an asset based on:

• Risk-free rate
• Market return
• Asset beta

Key output:

• Expected return using CAPM

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2. WACC (Weighted Average Cost of Capital)

Computes a firm’s average cost of capital using:

• Cost of equity
• Cost of debt
• Capital structure weights
• Corporate tax rate

Key output:

• Company WACC

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3. Black–Scholes Model (Options)

Prices European options using the Black–Scholes formula.

Features:

• Call and put option pricing
• Sensitivity to volatility, maturity, and interest rates

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4. Black–Scholes (Forex)

Applies the Black–Scholes framework to foreign exchange options, incorporating:

• Domestic interest rate
• Foreign interest rate
• Exchange rate dynamics

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🛠️ Technologies Used

• Python 3
• NumPy
• SciPy
• Math / Statistics

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🚀 Getting Started

Clone the repository

git clone https://github.com/Chriz97/python-financial-models.git
cd python-financial-models