This note demonstrates the use of Lotus models for financial forecasting. It uses a step-by-step approach with examples of how to tie the different elements together. An exercise is included that requires students to forecast financial statements for Walt Disney, Inc

This paper examines whether financial statement information can predict future realized volatility incremental to the volatility implied by option market prices. Prior research establishes that option-implied volatility is a biased estimator of future realized volatility. I use an analytical...