Securities Valuation Applications of Financial Modeling

Securities Valuation: Applications of Financial Modelingis a clear, concise guide to securities valuation and the principles of financial theory. It describes state-of-the-art methods for valuing a broad range of securities: equity, equity and interest rate options, swaps and swaptions, treasuries, corporate bonds with and without credit risks, mortgage-backed securities, collateralized mortgage obligations, credit derivative swaps, and more. Thomas Ho and Sang Bin Lee use their combined fifty years of experience in academia, financial business, and public services to present students and general readers with twenty-six challenging cases. These cases describe the contexts in which financial models are used, the practical complications of these models, and ways to deal with their limitations. Each chapter begins with a problem in valuation, formulates models for it, and then provides the solutions. The assumptions, input data, and output solutions for each model are clearly stated. The model is illustrated by a numerical example rendered in Excel. A companion website-www.thomasho.com-contains more than 130 Excel files of all the financial models from this book and its three companion volumes. Users can download the models, analyze them on their spreadsheets, and use them to do practice exercises Securities Valuation: Applications of Financial Modelingis ideal for undergraduate and graduate courses in finance and mathematical finance as well as for professional training programs. It is part of a series on financial modeling by the authors that also includesThe Oxford Guide to FinancialModeling. Future titles in the series will focus on financial modeling for options, futures, and derivatives and financial modeling for financial institutions.

Thomas S.Y. Ho is the President of the Thomas Ho Company, Ltd. He is the founder/CEO of Global Advanced Technology and a former professor of finance at the Stern School of Business, New York University.

Sang Bin Lee is Professor of Finance at Hanyang University in Korea and a Commissioner of the Korean SEC. He was president of the Korean Securities Association and an independent director and member of the risk management committee at Hana Bank in Korea.