id: 06206602
dt: j
an: 2013e.00703
au: Chrysafi, Loucas; Smith, Ron
ti: Mathematics of finance: the eigenway.
so: Math. Comput. Educ. 46, No. 1, 18-23 (2012).
py: 2012
pu: MATYC Journal, Old Bethpage, NY
la: EN
cc: M30 H60
ut: mathematical finance; valuation matrix
ci:
li:
ab: From the introduction: We prove some basic results from mathematics of
finance using methods of linear algebra. These results, dealing with
things such as accrual of interest, annuities, and loans, are commonly
encountered in finite mathematics and finance texts, and are most often
proven using geometric series, heuristic arguments, or are in some
cases simply stated. We make use of a carefully constructed matrix with
a single parameter, acting on â€œinvestment vectors" to arrive at the
same results.
rv: