Hi
I am trying to generate paths for stock prices via Brownian Motion. The code works okay (I hope!), but I can't get it to output correctly:
mu=0.10;sigma=0.05;N=5; % Number of time steps
NSim=3; % Number of simulations
dt=sigma/sqrt(N);S=zeros(NSim,N+1);S0=100;S(:,1)=100; % initial value
for k=1:NSim for i=2:N+1epsilon=randn; S(k,i)=S(k,i-1)+S(k,i-1)*(mu*dt+sigma*epsilon*sqrt(dt)); endendplot(S')xlim([0 N+1]);xlabel('Trading Days'); ylabel('Simulated Asset Price (£)');
However, the plot starts at 1 and finishes at 6. How can I make it start at 0 and stop at 5?
I think something has gone wrong with my loops!
Cheers
Joe
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