You're reading from Hands-On Simulation Modeling with Python Develop simulation models to get accurate results and enhance decision-making processes

Product type Paperback

Published in Jul 2020

Publisher Packt

ISBN-13 9781838985097

Length 346 pages

Edition 1st Edition

Languages

Python

Concepts

Machine Learning

Author (1):

Giuseppe Ciaburro

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Table of Contents (16) Chapters

Preface

1. Section 1: Getting Started with Numerical Simulation

2. Chapter 1: Introducing Simulation Models FREE CHAPTER

3. Chapter 2: Understanding Randomness and Random Numbers

4. Chapter 3: Probability and Data Generation Processes

5. Section 2: Simulation Modeling Algorithms and Techniques

6. Chapter 4: Exploring Monte Carlo Simulations

7. Chapter 5: Simulation-Based Markov Decision Processes

8. Chapter 6: Resampling Methods

9. Chapter 7: Using Simulation to Improve and Optimize Systems

10. Section 3: Real-World Applications

11. Chapter 8: Using Simulation Models for Financial Engineering

12. Chapter 9: Simulating Physical Phenomena Using Neural Networks

13. Chapter 10: Modeling and Simulation for Project Management

14. Chapter 11: What's Next?

15. Other Books You May Enjoy

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Chapter 8: Using Simulation Models for Financial Engineering

The explosive entry of systems based on artificial intelligence and machine learning has opened up new scenarios for the financial sector. These methods can bring benefits such as user rights protections, as well as macroeconomic benefits.

Monte Carlo methods find a natural application in finance for the numerical resolution of pricing and problems in covered call options. Essentially, these methods consist of simulating a given process or phenomenon using a given mathematical law and a sufficiently large set of data, created randomly from distributions that adequately represent real variables. The idea is that, if an analytical study is not possible, or adequate experimental sampling is not possible or convenient, the numerical simulation of the phenomenon is used. In this chapter, we will look at practical cases of using simulation methods in a financial context. You will learn how to use Monte Carlo methods to predict...