basically, you generate a distribution of log prices (sample random values from the distribution), exponentiate them and use as the price dist instead of MC prices
params to be used are 5% r and 20% sigma (given in exercise)
advantage of this is no need to consider step size that would have had otherwise in MC simulation, i.e. avoiding troubles with numerical methods
basically, you generate a distribution of log prices (sample random values from the distribution), exponentiate them and use as the price dist instead of MC prices params to be used are 5% r and 20% sigma (given in exercise) advantage of this is no need to consider step size that would have had otherwise in MC simulation, i.e. avoiding troubles with numerical methods