Illustrated, interactive guides to advanced financial risk and quantitative finance — each concept paired with plain-language intuition, worked examples, and graphs. Built for MBA, CFA and FRM learners.
Why correlation fails in a crisis, and how copulas model joint crashes and joint defaults. 20 sections, worked examples, and a graph for every concept — Gaussian vs Student-t, the five copula families, VaR & Expected Shortfall. Interactive, with PDF export.
The history of VaR, historical simulation, parametric and Monte Carlo methods, the coherence problem, and why Expected Shortfall became the Basel internal-model measure. Interactive distribution, convergence, comparison and backtesting labs.
A strong foundation in volatility and its market characteristics, followed by ARCH, GARCH(1,1), EWMA and asymmetric GJR-GARCH. Includes persistence, stationarity, shock half-life and an interactive risk-forecasting lab.
European call and put valuation from spot, strike, maturity, rates, dividends and volatility. Covers moneyness, assumptions, put–call parity, Greeks, model limitations and an interactive option pricer.
Build recombining price trees, derive risk-neutral probability and work backward from terminal payoffs. Covers European and American exercise, CRR factors, convergence to Black–Scholes and an interactive two-step pricer.
Option pricing when volatility itself is random. The Heston model's mean-reverting variance process, its semi-closed-form solution via the characteristic function, the volatility smile it reproduces, and calibration to market option prices — where Black-Scholes falls short.
Expected loss decomposed into probability of default, loss given default and exposure at default. Scorecards, the Merton structural view, and portfolio default correlation.
Equity as a call option on firm assets, distance-to-default, and turning market data into a probability of default — applied to Nifty 50 names.
Economic value of equity vs net interest income, repricing gaps, the Basel standardised shocks, and how banks measure and hedge structural rate risk.
Simulation for pricing and risk: variance reduction, convergence, and building joint scenarios with correlated and tail-dependent draws.
An exhaustive guide to centred moving averages, additive and multiplicative decomposition, stationarity tests, ACF, PACF, ARIMA/SARIMA identification, residual diagnostics and forecast evaluation.
A comprehensive guide to the convex bond price–yield relationship, Macaulay and modified duration, DV01, convexity, total price-change estimation, effective duration, key-rate risk and immunization, with a live sensitivity lab.
Modelling the far tail with Block Maxima, GEV and the Generalised Pareto Distribution. Covers threshold selection, Hill tail indices, EVT VaR and Expected Shortfall, portfolio tails and copulas, with an interactive POT lab.