The Financial Elements

The first step to building a financial model in GoldSim, as it is in any other financial modeling methodology, is to develop a model of the system of interest with all of its components.  In GoldSim, the building blocks used to represent the components of the system are the financial elements themselves.

GoldSim currently provides five types of financial elements:

Element

Default Symbol

Function

Fund

Fund

Simulates funds and accounts with specified deposits, withdrawals, and interest rates. Outputs include the fund balance and the cumulative interest paid.

Cash Flow

CashFlow

Computes the net present value (NPV) and internal rate of return (IRR) of a cash flow history.  Used to model the future return of projects, business ventures, and similar undertakings.

Investment

investment

Simulates an investment such as a security or portfolio of securities. Inputs include purchases and sales, and a history of the underlying security's unit value. Primary output is the investment's value.

Option

Option

Simulates the acquisition and exercise of financial options (puts and calls). Inputs include option type (American, European, Asian), terms and strike price, as well as triggers for acquiring and exercising the option. Primary output is current value (if exercised).

Insurance

Insurance

Simulates claims against an insurance policy. Inputs include the deductible and cap for the policy, as well as the claims.  Outputs include the cumulative covered and uncovered losses on the claims.


Like all modules, these elements are accessed in menus separately from the standard GoldSim elements:

Graphical user interface, application, Word

Description automatically generated

These elements are described further in the following sections.

   Note: In order to make the Financial Module elements available, you must activate the module.

Related Topics…

Learn more about: