CERTIFICATE PROGRAM IN ADVANCED FINANCIAL MODELLING

USING MS EXCEL AND VBA PROGRAMMING

INDIAN INSTITUTE OF QUANTITATIVE FINANCE Center of Excellence in Quantitative Finance and Financial Engineering

HE Cl Mode read like MS Excel are used in many fields like investmesearc ysis, ions, investment management, credit analysis,g, sal finan jections, project evaluation, etc. This is a prograent Ba easu ssionals teach the latest techniques and modelingdustry

ancial prof who do all kinds of financial modelling feel handicapped to qunting certa ls that requires them to do considerable amount of programm how to re even write some odd macros in VBA is not of any help toed course ain that teaches “VBA Programming for Finance”, a coursming with focus on Financial Applications.

hy we ha ned this course tailor-made for imparting these skills. This financial , has an extensive module on VBA Programming for Final Modelling A. The course starts with learning how to use advanced toolsrn to write grams to help in financial modelling, value derivative instrumeusing the models being used by the industry and ends with learninrisk analysi

COURSE OBJECTIV

COURSE PREREQUISITES

Basic knowledge of MS Excel Exposure to undergraduate lev Basic knowledge of finance

This is a "hands-on , with extensive use of computers and spreadsheets. The objVBA programm heet and modelling skills for creating computer-based modvarie f dec s facing today’s financial managers and investment bankingassig ents a o be similar to assignments delegates will encounter in their job

COUR DETA

Cour uratio Hours Cour chedu rdays and Sundays Cour ee 45,000/-

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PEDAGOGY

ll learn to : Excel based financial models vanced tools of Excel programs for implementing advities in Excel financial analysis, forecasting, etof company ation of Mergers and Acquisitions Monte Carlo Simulations in Excelatives alue-at-Risk forecasts

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Indian Institute of Quantitative Financ is established as a center of learni e fieFinance and Financial Engineering. II unded by leading finance professio d eextensive global experience and expe specialized Quantitative Finance an anand educational background from the global institutions. It is the first ins itsexclusively focuses on this extremely s ed field. IIQF conducts specialized courses an rate training programs in the fie uaFinancial Risk Management, Financia ing, Simulations and Econometrics dvaTechniques. There are specialized courses tailored to the specific needs of in t bfinance verticals. These courses aim to equip professionals for careers that re phskills in quantitative analysis, financial research, investment banking, risk man t, management and financial derivatives structuring. There are specialized courses to of finance professionals, engineers, mathematics/statistics graduates, manag graaccountants, and others.

Dr. M.P. Rajan, School of Mathematics, Indian Institute of Science Education & Research.been an Associate Professor with the Dept. of Mathematics, IIT-Guwahati. He had workSachs as Quant Analyst.

Dr. Binay Kumar Ray, AVP Quantitative Risk Team, Nomura (formerly Lehman Brothers).

Abhijit Biswas, Director and Head of Product Development at Risk Infotech Solutions.

Anisa Maljee, Ph. D candidate in Financial Risk Management, University of Durham, UK.

BOARD OF GOVERNORS

INDIAN INSTITUTE OF QUANTITATIVE CE

ld of Quantitativentrepreneurs withagement domains kind in India that

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DGM, AGM, Senior

KPMG, Hrale, Ertered Bn Bank, t Bank,orporatinancialspital, Krities, H

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Manager, Treasury, Research Analyst,

, M.Sc. (Statistics),GDBA, BE, B. Tech,

Our training programs have attracted participants from organizations like : Reserve Bank of India, JP Morgan Chase, NSE, BSE, Nomura, Lehman BrotBank, Barclays Bank, Bank Of America, CITI Group, Merrill Lynch, SocieteStanley, CitiBank, Accenture, Thomson Reuters, Boston Analytics, Standarof India, ICICI Bank, Axis Bank, HDFC Bank, S.I.D.B.I, Scotiabank, SouthIndusInd Bank, Bank Of Baroda, Centurion Bank of Punjab, DevelopmentInsurance, Birla Sun Life Insurance, Reliance Life Insurance, Stock HoldCorporation of India, CRISIL, Genpact, Reliance Industries Ltd., TCS, OraLabs, GlobeOp Financial Services, Intelnet Global Services, UTI AMC, TASunLife AMC, Edelweiss Securities, JM Financial Asset Management, Bricsmore. The professional designations of our delegates were : Executive Director, Vice President, Asst. Vice President, Financial EnginManager, Manager, Credit Manager, Deputy Manager, Assistant ManagAnalyst, Senior Analyst, Analyst (Risk Management), Analyst (Risk & CapitaFinancial Analyst, Credit Analyst, etc. Partcipants have diverse educational backgrounds like : Ph. D, Master of Financial Engineering, Post Graduate Diploma in FinancMBA, Master of Management Science, Master of Financial Management, CFICWA, CISA, CISSP, M.A (Economics), PGDM, M.Com, B.Sc., B.Com. etc.

PROFILE OF OUR TRAINING PARTICIPANTS

Trained thousands of professionals in Financial Modelling and other programs over the l

CREDENTIALS

Faculty are industry practitioners working with some of the best global banks and finaneducated from some of the top global institutions.

IIQF regularly conducts training programs in financial modelling and risk analy Mof New York Mellon, Societe Generale, ING and others.

Conducted corporate training programs for stock exchanges like NSE and BSE.

Conducts open house courses in financial modelling that attracts participants from

financial institutions. IIQF is the authorised training provider for the Risk Management Software produc

Solutions Pvt. Ltd. which is a pioneer in India in developing sophisticated risk masolutions for leading global and Indian financial institutions.

IIQF has partnered with Thomson Reuters to launch the most comprehensive

Engineering in India. IIQF has partnered with HPC links, a company specializing in super-computing tech

unique financial engineering solutions and services for the BFSI domain. IIQF is a GARP Authorized FRM® Training Course Provider. Four years of experience

exam training.

NC banks like Bank

tics for

ast fours years.

cial institutions and

banks and other

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Module 201 – Advanced Excel – I (10 Hours)(A) Excel Features and Techniques

1. Excel Shortcuts 2. Excel formulae 3. Usage of names to make formulas easier 4. Data Sorting 5. Excel formatting 6. Data Formats 7. Lines and Borders 8. Colours and Patterns 9. Excel functions 10. Excel charts 11. Dynamic Graphs 12. Conditional Formatting 13. Linking worksheets 14. Data Validation 15. Controls – Macros, Combo Boxes and buttons 16. User Forms and controls 17. Data Tables 18. Splitting screens to facilitate working between several

worksheets 19. Excel protection option

(B) Advanced Excel Features and Techniques

1. Use of Pivot Tables 2. Use of HLOOKUP, VLOOKUP, COUNTIF, SUMIF,

SUMPRODUCT 3. Excel Database Functions – DCOUNT, DSUM,

DPODUCT, DMAX, DMIN, DAVERAGE, DSTDEV,DSTDEVP, DVAR, DVARP, DGET

4. Scenario Analysis in Excel 5. Use of Goal Seek 6. Recording Excel Macro 7. Creating Macro and Running from a Button

COURSE SYLLABUS

(A) Analysis ToolPak

1. Descriptive Statistics 2. Histograms 3. Correlation and Covaria4. Regression Analysis 5. Hypothesis Testing

(B) Matrix Algebra and R unctions in Excel

1. Array Handling 2. Adding Matrices 3. Multiplying Matrices 4. Transposing a Matrix 5. Matrix Inversion 6. Array Functions in MMULT, TRANSPOSE,

MINVERSE, FREQUEN ST (C) Optimization Using S

1. Linear Programming us2. Portfolio Optimization 3. Generating Efficient Fro

(D) More About Excel

1. Internet features 2. Excel Add-ins 3. Excel file handling 4. Database Access

Module 202 – Advance 10 Hours)

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tile M7. Defense tactics 8. Regulations 9. Valuation method10. Deal making 11. Methods of payme12. Types of corporat13. Reasons for restru14. Examples and cas

(G) Loan Amortizati

1. Loan Sheet with p2. Loan Sheet with p

statements 6. Basic concepts - NPV, IRR, Amortization, Debt repayment, etc. 7. Ratios used in long and short term risk return analysis - DSCR

etc. 8. Making and analyzing projected financial statements in case of

infrastructure companies a. Sensitivity Analysis b. Long term projections and Scenario Analysis c. Case Study of an Infrastructure Company

9. Making and analyzing projected financial statements in case ofpower companies

a. Sensitivity Analysis b. Long term projections and Scenario Analysis c. Case Study of a Power Company

10. Project Financing

Models

Firm (FCFlow (DCFt Model

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Module 310 – Financial Modelling in Excel (40 Hours)(D) Cost of Cap

1. CAPM 2. Growth Mod3. WACC

(E) Stock Valua

1. Free Cash F2. Discounted C3. Dividend Dis4. Earnings Gr5. FCFF vs. FC

(F) Mergers, AcCorporate Restr

1. General M &2. Types of Me3. Acquirer and4. Forms of Ac5. Motives for M6. Friendly/Hos

(A) Overview

1. Introduction to Modelling 2. Excel as tool for Modelling

(B) Designing Spreadsheet models

1. Set aims and Objectives 2. Examine User needs and User interface 3. Set out Key variables and rules 4. Breakdown calculations into manageable groups 5. Produce individual modules 6. Testing and auditing 7. Protection as an application 8. Documentation

(C) Corporate Financial Statements

1. Profit and Loss Account 2. Balance Sheet 3. Financial Ratios 4. Cash flow statement 5. Identify the information contained in the three main financial

COURSE SYLLABUS

ng

option – Reduce tenor option – Reduce EMI

Module 301 – Excel VBA Programming For Finance (45 Hours) (A) Introduction to Programming

1. Basics of Computer Architecture 2. Concept of Programming and Programming Languages 3. Algorithms, Pseudo-codes and Flow-charts

(B) Introduction to VBA Programming Language

1. Introduction to Visual Basic for Applications (VBA) 2. VBA Data Types 3. Logic Structures

a. IF – ELSEIF – ELSE – END IF b. IIF c. SELECT CASE

4. Control Structures a. FOR - NEXT loop b. FOR - EACH loop c. DO WHILE loop d. DO UNTILL loop

5. Arrays in VBA a. Array data types b. Single dimensional Arrays c. Multi dimensional Arrays d. Dynamic Arrays e. How we can access arrays’ elements with control

structures f. Fast Sorting of Data using Arrays

6. Program structures a. Sub-routines b. Functions c. Logical organization of Functions and Sub-

routines d. Physical organization of program files

(C) Excel VBA Programming

1. MS Excel VBA 2. Excel VBA Program structure – Module3. Logical and Physical organization of Ex

Excel File and Code Modules 4. Excel VBA Editor 5. VBA subroutines

a. Logical algorithm of subroutine pb. Building your first subroutine in

6. What is User-Defined Function 7. How Excel’s end-users can benefit from

Functions 8. VBA functions and Excel functions 9. Creating User-Defined Functions in VB10. Differences between Excel User-Define

Subroutines 11. Accessing Excel functions from VBA 12. How Macro generated codes help to wr13. Error Handling 14. Debugging subroutine / user defined fu

a. Stepping b. Add watch c. Quick watch d. Setting, Toggling and Clearing B

s and Forms cel VBA programs –

rogram VBA Editor

User-Defined

A d Functions and

ite VBA programs

nction in VBA

reakpoints

Module 301 – Excel VBA Programming For Finance (contd.)(D) Introduction to Object Oriented Programming

1. Basic Concept of Object Oriented Programming 2. Objects 3. Methods 4. Properties 5. Events 6. Introduction to Excel Objects

a. The Excel Application Object b. Workbook Object c. Worksheet Object d. Range Object in a Worksheet e. Cell Object in a Range/Worksheet f. Table Object in a Worksheet g. Chart Object in a Workbook

7. Working with Excel objects within sub-routines and UDFs (F) Advanced Excel VBA Programming

1. Arrays and matrix algebra 2. How efficiently Multidimensional Array can be used to

manipulate matrices 3. Coding Correlation and Covariance Matrices 4. Importing Data into Excel from Text, CSV, etc. 5. Exporting Data from Excel into Text, CSV, etc. 6. Database Access using VBA

(G) Object Oriented Programming in Excel VBA

1. Class modules 2. User defined classes 3. Objects, methods, properties and events

(E) VBA User Forms

1. Custom Dialog Boxes a. Input box b. Message box

2. User Forms – creating, sh d uploading Userform 3. ActiveX Controls on Form4. What are the available co Userform 5. What tasks controls perfo6. Properties of each contro rform 7. Introduction to the events controls and forms 8. Adding controls and codin icular task

a. Text box b. Command button c. Check box d. Option button e. Spin button f. Scroll bar g. List box h. Combo box i. Tab strip

9. More about Methods and dling 10. Menus 11. Toolbars 12. Displaying a progress ind13. Displaying charts on Use14. Handling multiple controls15. User Interaction

owing ans ntrols for rm l for a Use related tog for part

Event han

icators rform

Module 311 – Advanced Financial Modelling Using Excel VBA (45 Hours)(A) Regression Analysis

1. Types of data a. Times-series data b. Cross-sectional data

2. Estimation of model parameters 3. Interpreting Test Statistics 4. Sales Forecasting using regression 5. Trend lines

(B) Modern Portfolio Theory

1. Portfolio Means and Variances 2. Determining Risk and Return 3. Expected Portfolio return 4. Estimating CAPM Model 5. Variance-Covariance Matrix 6. Calculating Portfolio Risk 7. Efficient Portfolios 8. Portfolio Optimization 9. Generating Efficient Frontier 10. Employing CAPM for performance evaluation of

Portfolios/ Funds (C) Monte Carlo Simulation in Excel

1. Overview 2. Generating Random Numbers of different distributions

using Excel functions: a. RAND, RANDBETWEEN b. NORMINV, NORMSINV c. NORMDIST, NORMSDIST d. Other Distributions

3. Simulating single stock price movement using VBA 4. Simulating correlated stocks price movements using VBA

(D) Derivatives

1. Forwards, Futures and O2. Forward Rate Agreement3. Swaps 4. Option Greeks 5. Implied Volatility 6. Calculation of Implied Vo g Goal Seek and Solver

(E) Equity Derivatives

1. European Options a. Black-Scholes Pri l b. Binomial Pricing Mc. Computing BS Gr

2. American Options a. b. Valuation with num thods c. Analytical solution

3. Asian Options - Valuatio nte Carlo Simulation using VBA

4. Barrier Options - Valuati onte Carlo Simulation using VBA

(F) Fixed Income Analytic

1. Pricing 2. Yield Measures 3. Duration and Modified Du4. Convexity 5. Sensitivity Measures – PV6. Portfolio Duration 7. Yield Curve Construction

a. Bootstrap methodb. Linear Interpolatioc. Cubic Spline Inter

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Module 311 – Advanced Financial Modelling Using Excel VBA (contd.)(G) Interest Rate Derivatives

1. Interest Rate Term Structure Models a. Vasicek Model b. Cox-Ingersoll-Ross (CIR) Model c. Black-Derman-Toy (BDT) Model

2. Interest Rate Options valuation a. Valuation of Caps

i. Caplet ii. Floorlet

b. Valuation of Swaption i. Payer Swaption ii. Receiver Swaption

(H) Currency Derivatives

1. Single-currency Options 2. Cross-currency Options

(I) Risk Management

1. Variance and Standard deviation 2. Covariance and Correlation 3. Beta 4. Value-at-Risk

d. Overview e. Defining Quantiles in Excel f. Value-at-Risk (VaR) Estimation Methods

i. Variance Covariance method ii. Historical Simulation method iii. Monte Carlo Simulation method

COURSE FACULTY Vishal Singhi, is the Chief Manager – Treasury in a top private bank, where his respon include structuring of Forex

and interest rate derivative products, designing hedging strategies, risk analysis, prici h dependent exotic options,etc. He has over five years of experience in industry and also in teaching in busin ols. He has done MMS inFinance and Certificate Course in Financial Engineering.

Rohit Pratap Singh is an Investment Banker working with the Mergers & Acquisition

RABO BANK. Previously he was Manager with the M&A and Corporate Advisory Investment Bank arm of SBI. He has over five years of experience in investment bankIIT-Kharagpur, B.Tech., CFA (Level-III candidate), NCFM.

Guruprasad Jambunathan has four years of experience in quantitative analysis & risk

he is responsible for undertaking advanced quantitative and risk-based analysis. Hrelevant field for over three years. He holds a MBA Finance, Degree in Statistics, FRM

Anand Sabale, FRM. He is Partner at SPN Risk Solutions LLP. He has over six year

consulting , performance analytics and algorithmic trading. He has researched, tradedtrading. He is involved in risk management consulting and performance analytics for hPreviously he had worked with Capital Metrics and Risk Solutions where he was involvstrategies and performance analytics for hedge funds. He is M.Tech. IIT Kanpur,holder.

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REGISTRATION PROCESS Online Registration: http://www.iiqf.org/registration.html Modes of Payment: Mode 1 - Cheque/Demand Draft Payments are accepted in the form of Cheque/DD In favour of "INDIAN INSTITUTE OF QUANTITATIVE FINANCE PVT. LTD." Payable at Mumbai or Delhi. Please mention your name, email and telephone number along with the payment. Please mail your payment to our Mumbai or Delhi office. Mode 2 - Wire Tranfer (NEFT/RTGS) Payments can also be made through internet banking. Please contact us for details. Offline Registration: Visit our offices at Mumbai or Delhi

Candidates may apply online for admission to the course. Admission will be on the candidate’sacademic background and professional experience.

ADMISSION PROCESS

CONTACT MumbaModule Royal PaMumbaiContacNitish MPhone:++91-97 Delhi (IF-109 VLSC 2, PDelhi - 1ContacAlok Bh Office HWeekdaSaturda(Weeke

based

DETAILS

i: No. 624, Mastermind IV, lms IT Park, Goregaon (E),

- 400065 t Person: ukherjee 91-22-28797660/

69860151

nformation Centre): ardhman Plaza Complex, ocket B Mayur Vihar 2, 10091

t Person: arti +91-9810054323

ours : ys : 10:00 AM - 7:30 PM ys & Sundays :2:30 PM - 7:30 PM nds with prior appointment)