The most comprehensive educational resources for finance

Spreadsheet: Option Trading Strategies

Download this free spreadsheet to form various option strategies and view their payoff diagrams. The spreadsheet allows you to create option strategies by combining long and short positions in stocks, call options and put options. You can select unto 3 call options and 3 put options. For example, to create a short covered call, buy

Best Books on Financial Modelling

Financial Modeling by Simon Benninga Too often, finance courses stop short of making a connection between textbook finance and the problems of real-world business. Financial Modeling bridges this gap between theory and practice by providing a nuts-and-bolts guide to solving common financial models with spreadsheets. Simon Benninga takes the reader step by step through each

How to Calculate Stock Beta in Excel

Beta (β) measures the volatility of a stock in relation to a market such as S&P 500 or any other index. It is an important measure to gauge the risk of a security. The market itself is considered to have a Beta of 1. Using regression analysis, the beta of the stock is calculated. If

Get Foreign Exchange Rates in Excel

This spreadsheet is designed to help you import the historical foreign exchange rates for any currency pair in the excel sheet. The spreadsheet makes use of the historical rates from oanda.com This is how it works: Enter a Currency pair. For example, if you want the quotes for EUR/USD, then EUR will be the first

Calculating Price and Yield of a Bond Using Zero Curve

In this post, we will demonstrate how you can calculate the price and the yield of a bond using a zero curve. Assume that it is a 3-year bond that pays a coupon of 6% and has a $100 par value. We also have the 3-year zero curve as shown below: The cash flows for

Get Yahoo Finance Stock Quotes in Excel

This excel sheet is designed to help you get Yahoo Finance Stock Quotes in Excel, i.e., to import the stock data from Yahoo Finance into the excel sheet for any stock. Yahoo Finance API is the most popular source for getting the stock market data and since many investors use Excel to track their stock

Calculating Net Present Value (NPV) and Internal Rate of Return (IRR) in Excel

Net Present Value (NPV) Function The NPV function calculates the present value of a series of cash flows at equal time intervals. The function is represented as follows: = NPV(rate,value1,value2,…) Here, rate is the discount rate for one period, and values are the cash flows. Any payments are entered with a negative sign, and income