Extending MC simulation models to Currencies & Commodities Extending the original Monte Carlo (MC) Simulator for Equities to Currencies and Commodities required a few simple changes. Rather than using just r, we now use an adjusted r for the model. In the case of currencies
Computational Finance: Building your first Monte Carlo (MC) simulator model for simulated equity prices in Excel
Here is a slightly revised model for calculating the change in price of an equity security. We now add one more component to our generator function. While the first term works off expected return the second term will help us model uncertainty. Since in our world we drive and link uncertainly with volatility, our model also uses a factor proportional to volatility.
Computational Finance: Monte-Carlo (MC) Simulation method– Building Equities, Commodities, Currencies and Interest Rate MC Simulators in Excel
Pricing a financial instrument is not an exact science. There it is out there now; you can go ahead and lynch me for blasphemy. While the formulae, the mathematics, the derivation, the proofs and the exact models would like us to believe otherwise, in essence
It took five months to break through the Technorati Rating system but earlier this month Learning Corporate Finance finally became a Technorati Top 100 Finance blog. Couldn’t have done this without our content team (Agnes, Nabil and Adnan) and our super editor (Uzma) or our