ABSTRACT
This chapter describes a sample of finance expert systems that are either in use or have given very promising results in the prototype stage and can therefore be predicted to proceed to implementation. The specific aspects of finance covered in the chapter are stock options pricing (AESOP), commercial loan analysis, capital budgeting and stock market prediction, along with finance-related applications of neural networks-based systems. The AESOP system is an attempt to apply expert system methodology to the domain of stock options pricing to be used at the American Stock Exchange. At the time when AESOP was developed, many of the options specialists at the American Stock Exchange Market (AMEX) used a classical model for valuing options developed by Black and Scholes. The symbolic model always checks the AMEX rules to be sure that exchange regulations are not violated, and also scans for arbitrage possibilities.
