Cheatsheet of Latex Code for Financial Engineering and Quantitative equations
rockingdingo 20220718 #financial engineering #blacksholesCheatsheet of Latex Code for Financial Engineering and Quantitative equations
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In this blog, we will summarize the latex code of most popular equations for financial engineering. We will cover important topics, including BlackScholes formula, Value at Risk(VaR), etc.
1. BlackScholes Formula

BlackScholes Formula
Equation
1.1 Call Formula
1.2 Put Formula
Parameters
Latex Code
C(S_{t},K,t)=S_{t}\Phi (d_{1})Ke^{r(Tt)}\Phi (d_{2})
P(S_{t},K,t)=Ke^{r(Tt)}\Phi (d_{2})S_{t}\Phi (d_{1})
d_{1}=\frac{\ln \frac{S_{t}}{K} + (r + \frac{\sigma^2}{2})\tau}{\sigma\sqrt{\tau}}
d_{2}=d_{1}\sigma\sqrt{\tau}
Explanation
Latex code for BlackScholes Formula. I will briefly introduce the notations in this formulation.
 : The spot price at time t for dividend stock.
 K: Strike price
 T: Maturity Time, Tt equals to time to maturity
 : constant volatility of the asset
 r: riskfree rate of interest

Value at Risk(VaR) Formula
Equation
Latex Code
\text{prob}(\Delta P < \text{VaR})=1\alpha
Explanation
Latex code for Value at Risk Formula. I will briefly introduce the notations in this formulation.
 VaR: Value at Risk
 : Confidence level that asset price will fall below the target
 : Price at time t
 : The difference in price from time t to t+1