Monday, February 20, 2012

Monte Carlo Analysis of Oil Prices


A Monte Carlo analysis may seem daunting at first, but as in many Corporate Finance applications, there are also other uses for Monte Carlo analysis. For example, a recent Monte Carlo analysis reveals the probability that gas prices will hit you in the wallet. http://www3.cfo.com/article/2012/2/capital-markets_oil-price-hedging-wti-crude-monte-carlo-simulation-options