Brownian Motion Development For Monte Carlo Method Applied On European, Style Option Price Forecasting
Brownian Motion Development For Monte Carlo Method Applied On European, Style Option Price Forecasting

Summary/Abstract: In forecasting values of random series (values of options and stocks in the future) Brownian Motion with Monte Carlo method is one of the technique for calculating results. This paper presenting mathematical techniques what are using in financial mathematics for predicting future values in discrete domain. Applied on forecasting values of European Style Option prices, this was powerful tool in the ages behind us, when precise calculating of future values was very important. Whole financial industry, known as Quant Finance was developed in the period from 1960 up to today.

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