In the project, we have completed four mini-projects:
1) Constructing a low risk portfolio and a high risk portfolio from stock data;
2) Performing normality tests to the data in 1);
3) Simulating and investigating the sensitivity of the rate of change of option payouts in Balck-Scholes model to expiration time and spot price;
4) Simulating Heston Model and developing a volatility hedging algorithm.