Browse By

Tag Archives: Monte Carlo simulator

Building Monte Carlo Simulation Models in Excel

Monte Carlo Simulations EXCEL

Monte Carlo Simulations Excel My first interaction with a Monte Carlo simulation was not a very pleasant experience.  It was a exam problem based on a difficult text book and an even more incomprehensible study note that I had hardly understood.  But over the years

No Thumbnail

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.