Macros & User defined function

with VBA

Why Macros / Functions?

Automating a task performed frequently

Automating repetitive operations
Creating customized functions

Simplified front end

Help other users

Complicated sequence of calculations can be

replaced by function entries

Macros

Recording Macros

To start the macro recorder, choose

ViewMacroRecord New Macro. The Record
Macro dialog box presents several options:

Macro Name: The name of the macro.

Shortcut Key: You can specify a key combination
that executes the macro. The key combination
always uses the Ctrl key.
Store Macro In: The location for the macro.
Description: A description of the macro. By
default, Excel inserts the date and your name. You
can add more information if you like.

Recording a macro: Example 1

Record a macro that changes the formatting for the

current range selection. The macro makes the selected
range use Arial 16-point type, boldface, and the color
red.

Select the cell that contains the value or text

Select ViewMacroRecord New Macro
Enter a new name for the macro
Assign this macro to the shortcut key Ctrl+Shift+F by entering
Shift+F in the edit box labeled Shortcut Key
Click OK. This closes the Record Macro dialog box.
Select FormatCells and then click the Font tab. Choose Arial
font, Bold, and 16-point type, and make the color red. Click OK
to close the Format Cells dialog box.
The macro is finished, so click the Stop Recording button on
the Stop Recording toolbar (ViewMacroStop Recording).

Recording a macro: Example 2

Converting formulas into values is usually a

two-step process in Excel:

Copy the range to the Clipboard.

Choose Edit -> Paste Special (with the Values
option selected) to paste the values over the
formulas.

User defined Functions

Structure of a function

Where to define functions:

Alt + F11
Within the VBA editor, select Insert | Module from the
menu

Has three elements

Header line with name of function and list of parameters
Closing line
Program lines (instructions) between header and closing
line
Ex:
Function myFunction(p)

End Function

Ex: A simple function

Finding the square:
Function mySqr(p)
mySqr = p * p
End Function
Find difference between two numbers:
Function myDiff(p1,p2)
myDiff = p1 p2
End Function

Conditional Execution Simple IF

If then else
Structure

If <condition> Then <If True> Else <If False>

Ex: If t-stat is greater than 1.96 return 1 else

return 0

Function myTstat(p)
If p > 1.96 then myTstat = 1 else myTstat = 0
End Function

Conditional Execution - Block IF

If more than one statement is to be

conditionally executed
Structure
If <condition> Then <Instruction>
ElseIf <condition> Then <Instruction>
[Any number of ElseIfs ]
Else <Instruction>
End If

Ex:

Deposit

Interest Rate

< 10,000

5%

> 10,000 & < 50,000

5.5%

>50,000 & < 1,00,000

6%

> 1,00,000

6.5%

Conditional Execution Block IF

Function myRates(deposit)
If deposit < 10000 Then
myRates = 0.05
ElseIf (deposit >= 10000) And (deposit < 50000) Then
myRates = 0.055
ElseIf (deposit >= 50000) And (deposit < 100000) Then
myRates = 0.06
Else
myRates = 0.065
End If
End Function

Conditional Execution Select Case

Execute a statement from a set of statements based on value

of an expression
Structure
Function mySelect(p)
Select Case p
Case 1
<statement>
Case 2
<statement>

Case Else
<statement>
End Select
End Function

Conditional Select Select Case

Ex:

Function myselect(p)
Select Case p
Case Is < 10000
myselect = 0.05
Case Is < 50000
myselect = 0.055
Case Is < 100000
myselect = 0.06
Case Else
myselect = 0.065
End Select
End Function

Excel functions in VBA

Compute the price of a call option using Black-Scholes

options pricing formulae. The inputs to the model
Stock Price 100
Strike Price ATM
Volatility 20%
Risk Free rate 5%
Time to Maturity 6 Months

Function BS(s, k, v, r, t)
d1 = (Application.WorksheetFunction.Ln(s / k) + (r + (v ^ 2) / 2) * t) / (v *
Sqr(t))
d2 = d1 - (v * Sqr(t))
BS = (Application.WorksheetFunction.NormSDist(d1) * s) (Application.WorksheetFunction.NormSDist(d2) * k * Exp(-r * t))
End Function

Loops For Next

Repeats a set of statements for a defined
number of times
Compute Factorial
Function myFactorial(p)
j=1

For i = 1 To p Step 1
j=j*i
Next i

myFactorial = j
End Function

Calling User-defined functions

Compute factorial using recursive function call

Function myFactorial2(p)
If p = 0 Then
myFactorial2 = 1
Else
myFactorial2 = myFactorial2(p - 1) * p
End If
End Function

Variables

Variables are used to store and manipulate data

Defining a variable

Dim <variable name> As <variable type>

Ex: Dim Temp As Integer

Commonly used variable type

Variable
Type

Range

Boolean

True / False

Integer

-32,768 to 32,767

Long (Integer) -2,147,483,648 to 2,147,483,647

Double
(Floating)

-1.798 E 308 to -4.941 E -324 (-ve)

4.941 E -324 to 1.798 E 308 (+ve)

Date

Jan 1, 100 to December 31, 9999

String

Text

Arrays
Compute

PV of a set of cash flows.

Inputs: cash-flows and discount rate

Function pvarray(myCF As Variant, n As Double)

Dim rws As Integer, cls As Integer, i As Integer, j As Integer, temp As
Double
Dim tempCF As Variant
tempCF = myCF
rws = UBound(tempCF, 1)
cls = UBound(tempCF, 2)
temp = 0
For i = 1 To cls
For j = 1 To rws
temp = temp + (tempCF(j, i) / (1 + n) ^ j)
Next j
Next i
pvarray = temp
End Function

Backup

Conditional Execution Nested IF

Function myRates2(deposit)
If (deposit < 10000) Then
myRates2 = 0.05
Else
If (deposit < 50000) Then
myRates2 = 0.055
Else
If (deposit < 100000) Then
myRates2 = 0.06
Else
myRates2 = 0.065
End If
End If
End If
End Function

Loops Do While
Executes statement while the condition is true
Compute factorial
Function myFactorial2(p)
If p < 2 Then
myFactorial2 = 1
Else
i=1
j=1
Do While i <= p
j=j*i
i=i+1
Loop
myFactorial2 = j
End If
End Function

Loops Do Until
Executes statement until the condition is met
Compute factorial
Function myFactorial3(p)
If p < 2 Then
myFactorial2 = 1
Else
i=1
j=1
Do Until i > p
j=j*i
i=i+1
Loop
myFactorial2 = j
End If
End Function

Arrays
A group of variables sharing the same name & type and
referenced by an index
Declaring an array
Dim myArray(5)
Array index starts from 0
Declaring an array with index boundaries
Dim myArray(2 To 5)
Identifying the bounds of an array
LBound(myArray)
UBound(myArray)
Multi-dimension array
Dim myArray(5,5)
Dim myArray(1 To 5, 1 to 5)