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Monte Carlo & Black Scholes models

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    Monte Carlo & Black Scholes models

    <deleted>
    Last edited by Bwana; 2 June 2022, 18:22.
    Bwana

    #2
    Yes.
    No.

    I use monte carlo simulation when working with my risk assessments. Knowing when to use monte carlo is the secret. Typically your going to prepare a model in excel where you have a large population exposed to random event/s. The objective is often to understand when and where an event shall occur, 10,000 iterations is safe enough to produce decent results.
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    Comment


      #3
      Originally posted by scooterscot View Post
      Knowing when to use monte carlo is the secret.
      It's not actually you dullard.

      You need to use Monte Carlo when and only when you have more money than brains.

      Don't try to count cards there in Blackjack because it is illegal.

      HTH

      Comment


        #4
        Originally posted by AtW View Post
        It's not actually you dullard.
        Whatever. I've sat alongside so many a math graduate applying techniques when they were not needed. Turns out experience pays more than qualification when understanding why one method should be chosen over another.

        Originally posted by AtW View Post
        It's not actually you dullard.
        Did DP not tell you already, don't judge or thee shall be judged.

        Originally posted by AtW View Post
        You need to use Monte Carlo when and only when you have more money than brains.
        In my industry. real engineering, such models are used to generate statistics that help the decision make well make decisions. I'm gainfully employed providing such services.
        Last edited by scooterscot; 5 August 2011, 21:56.
        "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

        Comment


          #5
          Originally posted by scooterscot View Post
          In my industry. real engineering, such models are used to generate statistics that help the decision make well make decisions. I'm gainfully employed providing such services.

          Comment


            #6
            Originally posted by AtW View Post
            If it were generally known for what reason I'd use such models for you'd... never mind. Ask yourself who pays more that the city for such services? People who've more to loose than money.
            "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

            Comment


              #7
              Originally posted by scooterscot View Post
              People who've more to loose than money.
              Do you mean paper money here or proper stuff like bars of gold?

              Comment


                #8
                Originally posted by AtW View Post
                Do you mean paper money here or proper stuff like bars of gold?
                No I mean lives. Human life.
                "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

                Comment


                  #9
                  Originally posted by scooterscot View Post
                  No I mean lives. Human life.
                  You ain't saving them whilst you post tulip on this forum.

                  Given how much you gloat about big euros you make, I'd say it seems to me that money is far more important to you than lives.

                  Regardless of that you are, in my view, completely out of your depth when making comments on any matters other than how much you earn in Europe and how great Apple toys are.

                  Comment


                    #10
                    Originally posted by AtW View Post
                    Don't try to count cards there in Blackjack because it is illegal.
                    I don't think it's specifically illegal anywhere - the various laws generally state that you are not allowed to cheat - and there is a different interpretation as to whether card counting is cheating - or just playing the game very well.

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