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Finance & Economics Examples

Natural language prompts for financial modeling and economic analysis.

Options Pricing

Price a European call option using Black-Scholes

Compute option Greeks (delta, gamma, vega, theta, rho)

Price an American put option using binomial tree

Model implied volatility surface

Price a barrier option using Monte Carlo

Compute the VIX from option prices

Price Asian options with arithmetic average

Model volatility smile and skew

Price options with stochastic volatility (Heston model)

Compute early exercise boundary for American options

Portfolio Management

Compute the efficient frontier for a set of assets

Optimize a portfolio using mean-variance analysis

Calculate Value at Risk (VaR) using historical simulation

Compute portfolio beta and alpha

Implement Black-Litterman portfolio optimization

Calculate the Sharpe ratio and information ratio

Model portfolio rebalancing costs

Compute risk parity portfolio weights

Analyze factor exposures of a portfolio

Implement robust portfolio optimization

Fixed Income

Compute bond price and yield to maturity

Calculate duration and convexity

Build a yield curve from bond prices

Price an interest rate swap

Model credit spread dynamics

Calculate the DV01 of a bond portfolio

Price a convertible bond

Model prepayment risk for mortgages

Compute the forward rate curve

Price a callable bond using lattice methods

Risk Management

Compute VaR using parametric, historical, and Monte Carlo methods

Calculate Expected Shortfall (CVaR)

Model credit risk using Merton model

Compute counterparty credit exposure

Analyze correlation breakdown in crisis

Model operational risk using LDA

Calculate regulatory capital requirements

Stress test a portfolio under scenarios

Compute liquidity-adjusted VaR

Model systemic risk contagion

Derivatives & Structured Products

Price a credit default swap

Model CDO tranche losses

Price a variance swap

Compute the Greeks for exotic options

Model a total return swap

Price inflation-linked bonds

Model a constant proportion portfolio insurance (CPPI)

Price a range accrual note

Model autocallable structured products

Compute correlation sensitivity for basket options

Time Series & Forecasting

Fit ARIMA model to stock returns

Model volatility clustering with GARCH

Compute autocorrelation and partial autocorrelation

Test for cointegration between assets

Implement exponential smoothing forecasts

Model regime switching in markets

Compute rolling correlations and betas

Forecast realized volatility

Analyze lead-lag relationships

Model mean reversion and half-life

Algorithmic Trading

Backtest a momentum strategy

Compute transaction costs and slippage

Implement a pairs trading strategy

Model market microstructure and bid-ask spread

Optimize trade execution (TWAP, VWAP)

Analyze order book dynamics

Compute optimal position sizing (Kelly criterion)

Model market impact of large trades

Implement a market making strategy

Analyze trading signals and alpha decay

Macroeconomics

Solve a DSGE model and compute impulse responses

Model the IS-LM framework

Analyze the Phillips curve relationship

Simulate a real business cycle model

Model monetary policy with Taylor rule

Analyze fiscal multipliers

Model exchange rate dynamics

Compute the natural rate of interest

Model optimal taxation

Analyze the effects of quantitative easing

Microeconomics

Solve for Nash equilibrium in a game

Model Cournot and Bertrand competition

Compute consumer and producer surplus

Model adverse selection in insurance

Analyze auction design and bidding

Model monopoly pricing with market power

Compute general equilibrium prices

Model search and matching in labor markets

Analyze mechanism design problems

Model network effects and platform competition

Econometrics

Estimate a linear regression with heteroskedasticity

Implement instrumental variables estimation

Test for Granger causality

Estimate a panel data model with fixed effects

Compute difference-in-differences estimator

Implement propensity score matching

Estimate a quantile regression

Model sample selection (Heckman correction)

Implement synthetic control method

Estimate a structural VAR model

Corporate Finance

Compute the weighted average cost of capital (WACC)

Build a DCF valuation model

Analyze capital structure optimization

Compute economic value added (EVA)

Model dividend policy decisions

Analyze mergers and acquisition synergies

Compute the real options value of a project

Model working capital management

Analyze leverage and financial distress

Compute the cost of equity using CAPM

Cryptocurrency & DeFi

Model cryptocurrency price dynamics

Compute impermanent loss in AMM pools

Analyze on-chain transaction patterns

Model staking rewards and inflation

Compute gas optimization strategies

Analyze DEX arbitrage opportunities

Model tokenomics and supply dynamics

Compute optimal liquidation thresholds

Analyze flash loan attack vectors

Model yield farming strategies