SP5 Investment & Finance
Option payoffs, bond pricing and duration, the efficient frontier and Redington immunisation: the quantitative core of SP5, interactive.
Interactive tools
Option payoff diagrams
Price calls and puts with Black-Scholes, combine up to four legs plus the underlying, and see breakevens, max profit and max loss instantly. Made for CM2, SP5 and CFA revision, with name-the-position and draw-the-payoff test modes.
Bond price and yield calculator
Price from yield or yield from price, with running yield, duration, modified duration and convexity. Fixed interest for CM1, SP5 and CFA, with a test-yourself mode and worked solutions.
Efficient frontier playground
Three assets with adjustable returns, risks and correlations: the frontier, the minimum-variance and tangency portfolios and the capital market line, drawn live. CM2, SP5 and CFA.
Immunisation playground
Two bonds solved to match a liability's present value and duration, and the surplus smile that proves Redington's conditions work — against a PV-only portfolio that doesn't. CM1 and SP5.
Value at Risk & Expected Shortfall
Slide the confidence level and watch VaR and TVaR move on Normal and fat-tailed t distributions, run a historical simulation on a dealt year of daily P&L, and see the two-loans example where VaR fails subadditivity. CS2, CM2 and SP5, with a test-yourself mode and worked solutions.