BS_sim: Simulate Stock Price and Price of Underlying Asset
Description
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, \(S_{0}\).