ABSTRACT

Finance, similar to engineering, makes extensive use of mathematics. In this chapter we present several financial problems showing how MATLAB can be successfully used to solve them. We start with examples that can be directly solved by MATLAB. Then, we show the use of some functions within the Financial Toolbox and the Financial Derivatives Toolbox. The examples included give the reader an idea of MATLAB’s potential to solve problems in Finance. We start this chapter with a brief review of financial concepts and use MATLAB to solve some simple financial problems.