By developing the basic intuition of how Monte Carlo simulation works within an Excel spreadsheet framework, this paper allows the undergraduate student to use Monte Carlo simulation techniques to price European style options without additional sophisticated software. Further, the skills and intuition developed provide the basis for much more complex simulation techniques.

Document Type


Publication Date

Spring 2005

Publisher Statement

Copyright © 2005 Financial Education Association. This article first appeared in the Journal of Financial Education 31 (Spring 2005): 86-97.

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