GoldSim 2006 User Conference Slide 1 Vancouver, B.C. The GoldSim Financial Module

GoldSim 2006 User Conference Slide 2 Vancouver, B.C. Financial Module Overview Currency editor Five new elements: –Fund –Cash Flow –Investment –Option –Insurance New math functions Plus a complementary function element: –History Generator

GoldSim 2006 User Conference Slide 3 Vancouver, B.C. Currencies Use Model/Currencies to define your preferred currency: In input fields, use Ctrl-E for Euros, Ctrl-Y for Yen, Ctrl-P for pound.

GoldSim 2006 User Conference Slide 4 Vancouver, B.C. The Fund Element

GoldSim 2006 User Conference Slide 5 Vancouver, B.C. The Cash Flow Element

GoldSim 2006 User Conference Slide 6 Vancouver, B.C. The Investment Element

GoldSim 2006 User Conference Slide 7 Vancouver, B.C. The Option Element

GoldSim 2006 User Conference Slide 8 Vancouver, B.C. The Insurance Element

GoldSim 2006 User Conference Slide 9 Vancouver, B.C. Financial Math Functions

GoldSim 2006 User Conference Slide 10 Vancouver, B.C. The History Generator Element This is a new element in the Function group It’s main purpose is to generate realistic input history for financial module elements: –Stock values –Interest rates –Inflation rates It has two main flavors: –Geometric growth –Random walk

GoldSim 2006 User Conference Slide 11 Vancouver, B.C. History Generator: Random Walk

GoldSim 2006 User Conference Slide 12 Vancouver, B.C. History Generator: Geometric Growth

GoldSim 2006 User Conference Slide 13 Vancouver, B.C. History Generator: Geometric Growth or, Do You Believe in Butterflies? Example: simulate the Dow-Jones Average See DowFit.gsm (use of the Optimizer to fit a curve to the historical Dow Jones average). See FN_DowJones.gsm

GoldSim 2006 User Conference Slide 14 Vancouver, B.C. Portfolio Rebalancing… does it work? See model Rebalance.gsm…