A financial derivative instrument is a contract between two parties that specifies how payments or financial assets are exchanged between the parties based upon the value of a specified underlying financial asset. The payments are linked, or derived, from the value of the underlying asset, and specified in the contract in terms of the notional amount, dates of exchange, and variables associated with the underlying asset.
You can price and analyze individual and portfolios of equity, credit, and fixed-income derivatives using MATLAB® and Financial Derivatives Toolbox™. You can use the toolbox to compute prices and sensitivities, view price evolutions, and perform hedging analyses. The toolbox provides support for interest rate derivatives like bonds, options, swaps, swaptions, floating rate notes, caps, bonds with embedded options, as well as several exotic equity options like basket options, digital options, and rainbow options.
Pricing Financial Derivatives with MATLAB 44:00 (Webinar)