The Monte Carlo Simulation is a technique used to stimulate potential changes to a value, a price, or any number, usually over a number of time periods. It has a wide variety of applications, some of which include: stock prices and inflation rates.
Key learning objectives:
What is the Monte Carlo Simulation?
What are some of its uses in financial markets?
How does the simulation work in practice?
Introduction to Options, Pricing and Use Cases
Peter Eisenhardt • 13:18