A Monte Carlo simulation can be developed using Microsoft Excel and a game of dice. A data table can be used to generate the results—a minimum of 5,000 results are needed to prepare the Monte ...

The examples presented above demonstrate how a Monte Carlo simulation is useful when assessing risk in business and accounting decisions. The loan covenant setting provides a straightforward context ...

This paper illustrates the manner in which two path dependent exotic options (Asian and Fixed Strike Lookback options) can be valued using Monte Carlo simulations on Excel. Though Excel is not a ...

Traders looking to back-test a model or strategy can use simulated prices to validate its effectiveness. Excel can help with your back-testing using a monte carlo simulation to generate random ...

Michael P. Keane, Kenneth I. Wolpin, The Solution and Estimation of Discrete Choice Dynamic Programming Models by Simulation and Interpolation: Monte Carlo Evidence, The Review of Economics and ...