Monte Carlo Simulation
Monte Carlo
Simulation Finance Definition
A process for valuing options by using numerical
probability to generate a series of prices for the underlying instrument. The
Monte Carlo Simulation randomly generates values for uncertain variables over
and over. The results are analyzed to decide which variables are most likely to
occur. It derives its name from Monte Carlo, the Monaco city near the South of
France, which is known for its casinos.
Browse dictionary entries near Monte Carlo Simulation
- Monte Carlo method
- Monte Carlo
- monte
- Montcalm
- Montauk Point
- montane
- Montanan
- Montana
- montan wax
- Montale
- Montebello
- monteith
- Montenegrin
- Montenegro
- Monterey
- Monterey Jack
- Monterey Park
- montero
- monteros
- Monterrey
