MATLAB: Doesn’t MATLAB plot

plot

stock = 100;
delta_t = 1 / 365;
volatility = 0.1;
for i = 1 : 5
    stock = stock .* exp( volatility .* sqrt ( delta_t ) .* randn(1) );
    disp( stock )
end

t = 1 : 5 plot(stock,t)

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Anyone could help please? Thank you

Tony

Best Answer

You are not assigning the output stock to a vector, so you are just getting the latest result from the for loop.

     stock = zeros(5,1);
     delta_t = 1 / 365;
     volatility = 0.1;
     initstock = 100;
    for ii = 1 : 5
        stock(ii) = initstock .* exp( volatility .* sqrt ( delta_t ) .* randn(1) );
        initstock = stock(ii);
    end
    t = 1:length(stock);
    plot(t,stock)

Related Solutions

MATLAB: How to simulate 10000 times

Just wrap the for loop in another loop that runs 10,000 experiments, like this:

clc;    % Clear the command window.
close all;  % Close all figures (except those of imtool.)
clear;  % Erase all existing variables. Or clearvars if you want.
workspace;  % Make sure the workspace panel is showing.
format long g;
format compact;
fontSize = 20;
stock(1) = 675.15;
delta_t = 1 / 30;
volatility = 0.2;
drift = 0.02;
for experiment = 1 : 10000
  for i = 2 : 30
    stock(i) = stock(i-1) .* exp( volatility .* sqrt ( delta_t ) .* randn(1) + drift .* delta_t );
  end
  lastPrice(experiment) = stock(end);
  disp( stock(30) )
end
plot(lastPrice, 'b-');
grid on;
% Enlarge figure to full screen.
set(gcf, 'units','normalized','outerposition',[0 0 1 1]);
title('Monte Carlo Experiment on Ending Stock Price', 'fontSize', fontSize);
ylabel('Ending Stock Price', 'fontSize', fontSize);
xlabel('Experiment number', 'fontSize', fontSize);

MATLAB: Plot histogram on matlab

You just have to save each value of C as an element of a vector.

stock(1) = 675.15;
delta_t = 1 / 30;
volatility = 0.2;
drift = 0.02;
C = zeros(10000,1);
for n = 1 : 10000
for i = 2 : 30
stock(i) = stock(i-1) .* exp( volatility .* sqrt ( delta_t ) .* randn(1) + drift .* delta_t );
    end
    r = 0.01; 
    S = stock(30);
    K = 690;
    T = 1/6; %Originally 3 months, after 1 month we have 2 months left
    v = 0.2;
    d1 = (log(S/K) + (r + (v^2)/2) .* T) / (v .* sqrt(T));
    d2 = (log(S/K) + (r - (v^2)/2) .* T) / (v .* sqrt(T));
    C(n) = normcdf(d1) .* S - normcdf(d2) .* K .* exp(-r .* T);
end
hist(C)

Best Answer

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MATLAB: How to simulate 10000 times

MATLAB: Plot histogram on matlab

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