How can I use Python for financial modeling?

How can I use Python for financial modeling?

You can use Python for financial modeling by leveraging libraries like Pandas for data manipulation, NumPy for numerical calculations, and Matplotlib for data visualization.

What are some common financial models I can build with Python?

Common financial models include discounted cash flow (DCF) models, Monte Carlo simulations, and portfolio optimization models.

Can you show me a simple example of a DCF model in Python?

Sure! Here's a basic example:

import numpy as np

cash_flows = np.array([100, 150, 200])  # Cash flows for 3 years
rate = 0.1  # Discount rate

dcf = sum(cash_flows / (1 + rate) ** np.arange(1, len(cash_flows) + 1))
print(f'DCF: {dcf}')

What libraries should I install for financial modeling?

You should install libraries like Pandas, NumPy, SciPy, and Matplotlib. You can do this using pip: pip install pandas numpy scipy matplotlib.