MATLAB: How to perform a Monte Carlo simulation on a stochastic process

Question

As stated in the title, I need to perform a Monte Carlo simulation on a stochastic process. I would like to have, if possibile, both the code and a quick explanation for the strings that will be written. The assignment is:

Thank you.

Answer 1

You can use the rand() function. For what it's worth, I'm attaching some Monte Carlo demos I have.