how to simulate 10000 times

stock(1) = 675.15;

delta_t = 1 / 30;

volatility = 0.2;

drift = 0.02;

for i = 2 : 30

stock(i) = stock(i-1) .* exp( volatility .* sqrt ( delta_t ) .* randn(1) + drift .* delta_t );

end

disp( stock(30) )

How do I generate 10,000 random results?

Answer 1

[Image Analyst]

Just wrap the for loop in another loop that runs 10,000 experiments, like this:

clc;    % Clear the command window.
close all;  % Close all figures (except those of imtool.)
clear;  % Erase all existing variables. Or clearvars if you want.
workspace;  % Make sure the workspace panel is showing.
format long g;
format compact;
fontSize = 20;

stock(1) = 675.15;
delta_t = 1 / 30;
volatility = 0.2;
drift = 0.02;
for experiment = 1 : 10000
  for i = 2 : 30
    stock(i) = stock(i-1) .* exp( volatility .* sqrt ( delta_t ) .* randn(1) + drift .* delta_t );
  end
  lastPrice(experiment) = stock(end);
  disp( stock(30) )
end
plot(lastPrice, 'b-');
grid on;
% Enlarge figure to full screen.
set(gcf, 'units','normalized','outerposition',[0 0 1 1]);
title('Monte Carlo Experiment on Ending Stock Price', 'fontSize', fontSize);
ylabel('Ending Stock Price', 'fontSize', fontSize);
xlabel('Experiment number', 'fontSize', fontSize);

[Tiancong Sui]

Thank you SO MUCH ! very helpful! I can keep going now