Summary

Financial Models Using Simulation and Optimization is an informative hands-on book that shows you how to harness the power of Microsoft RM Excel RM and Palisade Corporation's Decision Tools RM add-ins -- including @RISK and Evolver -- to solve complicated financial problems. Learn innovative techniques and methods that will give you the edge in solving real-world financial problems. Topics and examples covered in the text include:
-- Data Analysis in Excel for forecasting demand and estimating sales, using regression, data tables, optimization and pivot tables
-- Optimization with Solver and Evolver for funding pension liabilities, portfolio optimization, fitting the yield curve, generating implied forward rates and immunization against interest rate risk
-- Simulation with @RISK for analyzing new products, modeling acquisitions, evaluating Pro Forma Financial Statements and simulating the yield curve
-- Simulation of Financial Derivatives using @RISK, including pricing exotic options, finding VAR for a portfolio, VAR and options pricing with correlated stocks, computing VAR for forwards and futures, valuing foreign exchange options and hedging risk, using Delta hedging and valuing real options
-- Using Binomial Trees for pricing and finding VAR for an American option and valuing real options
-- And Extras such as simulating the NCAA tournament, simulating KENO, analyzing the birthday problem and learning how to link SOLVER and @RISKExamples in this book have been used in executive training classes at GM, NCR, Price Waterhouse Coopers, Bristol-Myers Squibb, and Eli Lilly. All files discussed in the book are included on a CD-ROM. The step-by-step andteach-by-example approach should make the book suitable for advanced undergraduates. MBAs and most of all practicing finance professionals for both self-study or education classes.