#### Overview of this book

Python for Finance
Credits
Acknowledgments
www.PacktPub.com
Preface
Free Chapter
Introduction and Installation of Python
13 Lines of Python to Price a Call Option
Introduction to Modules
Statistical Analysis of Time Series
Index

## Understanding the time value of money

In finance, we know that \$100 received today is more valuable than \$100 received one year later. If we use size to represent the difference, we could have the following Python program to represent the same concept:

```from matplotlib.pyplot import *
fig1 = figure(facecolor='white')
ax1 = axes(frameon=False)
ax1.set_frame_on(False)
ax1.get_xaxis().tick_bottom()
ax1.axes.get_yaxis().set_visible(False)
x=range(0,11,2)
x1=range(len(x),0,-1)
y = [0]*len(x);
annotate("Today's value of \$100 received today",xy=(0,0),xytext=(2,0.001),arrowprops=dict(facecolor='black',shrink=0.02))
annotate("Today's value of \$100 received in 2 years",xy=(2,0.00005),xytext=(3.5,0.0008),arrowprops=dict(facecolor='black',shrink=0.02))