Generate a random walk using a binomial process with p = 0.5. Assume that at each step
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1000 random walk steps and calculate expected value and variance of a step of the random walk. Calculate the sum of the random walk over all 1000 steps. Repeat 500 times and compute the mean and variance of the random walk.
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Related Book For
An Introduction to the Mathematics of Financial Derivatives
ISBN: 978-0123846822
3rd edition
Authors: Ali Hirsa, Salih N. Neftci
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