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A simple equation solver and its application to financial modelling
Authors:Emanuel Derman  Christopher J. Van Wyk
Abstract:We discuss a simple algorithm for solving sets of simultaneous equations. The algorithm can solve systems of linear and some kinds of non-linear equations, although it has nowhere near the power of a general non-linear equation solver. Its principal advantages over more general algorithms are simplicity and speed. Versions of the algorithm have been used in a graphics language and in a system for interactively modifying the equations that constitute financial models. We discuss the second application in more detail here.
Keywords:Simultaneous equations  Algebraic simplification  Non-procedural languages  Financial models
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