Python for Finance: Analyze Big Financial Data

Figure 2-4. Screenshot of IPython Notebook with Markdown rendering

The LaTeX code that describes Equation 2-1 looks roughly like the following:

S_T =   S_0 \exp((r -   0.5\sigma^2)    T   +   \sigma  \sqrt{T}    z)

Figure 2-5 shows a raw text cell with Markdown text and the LaTeX code, as well as the

result as rendered in a Markdown cell. The figure also shows a more complex formula: the

Black-Scholes-Merton option pricing formula for European call options, as found in

Equation 3-1 in Chapter 3.