# BS_sim

From DtD v0.2.1
by Benjamin Christoffersen

##### Simulate Stock Price and Price of Underlying Asset

At least one of `D`

, `r`

, or `T.`

needs to have
the desired length of the simulated series. All vectors with length greater
than one needs to have the same length.

##### Usage

`BS_sim(vol, mu, dt, V_0, D, r, T.)`

##### Arguments

- vol
numeric scalar with \(\sigma\) value.

- mu
numeric scalar with \(\mu\) value.

- dt
numeric scalar with time increments between observations.

- V_0
numeric scalar with starting value of the underlying asset, \(S_{0}\).

- D
numeric vector or scalar with debt due in

`T.`

.- r
numeric vector or scalar with risk free rates.

- T.
numeric vector or scalar with time to maturity.

##### See Also

##### Examples

```
# NOT RUN {
library(DtD)
set.seed(79156879)
sims <- BS_sim(
vol = .1, mu = .05, dt = .2, V_0 = 100, T. = 1, D = rep(80, 20), r = .01)
# plot underlying
plot(sims$V)
# plot stock
plot(sims$S)
# }
```

*Documentation reproduced from package DtD, version 0.2.1, License: GPL-2*

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