The web site is now storing only essential cookies on your computer. If you don't allow cookies, you may not be able to use certain features of the web site including but not limited to: log in, buy products, see personalized content, switch between site cultures. It is recommended that you allow all cookies.
HomeNews & Views

All news by: Dr Steven Firer and Brandon Thompson

Monte Carlo Simulations and How They Work

The Monte Carlo Method was invented in the 1940’s by John von Neumann and Stanislaw Ulam during World War II to improve decision making under uncertain conditions. It was named after a well-known casino town, called Monaco, since the element of chance is core to the modeling approach, similar to a game of roulette. In this article, Dr. Steven Firer and Brandon Thompson explore the practical application of the Monte Carlo Simulation and how it is applicable to the valuing of options.