Monte carlo simulation stock price excel example
Monte Carlo Simulation can be used to price various financial instruments The changes in the stock prices can be calculated using the following formula: In our example, we will calculate this number using the Rand() function in excel. Reddy, Krishna and Clinton, Vaughan, Simulating Stock Prices Using Geometric Brownian Motion: and test the model using a sample of large Australian stocks employing a range of They tested the effectiveness of their modified method using Monte Carlo simulations, and Financial modelling using Excel and VBA.