This content management website is an attempt to organize all the work I've done over the past few years. I'll try to update this website with a lot of useful information so keep coming back to get the updates.

Also, if you have questions / suggestions then please leave a comment on the particular article.

Thanks.

]]>There are many available definitions of Z (zero volatility) spread e.g.:

**Quote [Investopedia]:
***"The constant spread that will make the price of a security equal to the present value of its cash flows when added to the yield at each point on the spot rate Treasury curve where a cash flow is received . In other words, each cash flow is discounted at the appropriate Treasury spot rate plus the Z-spread."*

**Quote [Wikipedia]: **

*"The Z-spread, ZSPRD, Zero-volatility spread or Yield curve spread on a simple mortgage-backed security (MBS) is the flat spread over the treasury yield curve required in discounting a pre-determined coupon schedule to arrive at its present market price."*

The purpose of this article is give a visual (graphical) representation of a z-spread. I will go over the procedure of building a graph in excel. This should help your understanding of the z-spread. Towards the end of this article you should see a graph that is similar to:

]]>I will give a step-by-step setup of simulations testbed using 4 different technologies:

- Excel Spreadsheets
- Excel VBA macro
- Python
- Matlab

I believe that the best way to learn something is to bring in an application (or example) in as soon as possible. So the layout of this article will be that I will describe a fictitious 'situation' and then I will go ahead and provide a step-by-step guide as how to model the 'situation' in computer tech (e.g. matlab, python,...).

The complete source code is available in Appendix A

I have a created an example to illustrate how you can use std::find_if and std::bind2nd to search through a STL collection. I've tries to keep the example simple. Please let me know if you have trouble understanding the code. In this example we will create a collection of Person and we will search through this collection.

This process has many applications and is readily used in the finance, physics and mathematics. Did you know that stochastic probabilities are used in many asset pricing models and also in the heat diffusion equation? The stochastic process is the way of representing and analyzing the random **behavior** in the stock prices or in heat diffusion.

In order to understand why Lognormal distribution is suitable for stock price returns, let’s first think about stock prices, the following graph is a stock price chart over time:T.

]]>The general formula for the newton method is:

]]>Before talking about stock price return as lognormal distribution, I want to give a quick overview of normal and lognormal distributions.

Note: this is not a complete tutorial on normal and lognormal distributions but I do talk about the properties that are important for the purpose of this article.