Write a VBA program which reproduces the lognormal frequency distribution for an arbitrary number of runs. That

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Write a VBA program which reproduces the lognormal frequency distribution for an arbitrary number of runs. That is, this program should

• Produce N normal random deviates.

• For each deviate produce a lognormal price relative exp [μΔt + σZ√Δt].

• Classify each price relative into a set of bins running from 0, 0.1, … , 3.

• Put the frequencies on the spreadsheet and produce a frequency graph such as the one in section 26.5.

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Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

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