Hi, I need some confirmation whether negative prices can occur under GBM model. Thanks.

<t>I am faced with the following question and my choices are down to (b) and (d). Not too sure whether the use of pseudo-numbers will improve the accuracy of monte carlo as my understanding is that pseudo will only help to achieve a certain level of accuracy faster as compared to random numbers. I a...

<t>I am faced with the following question and my choices are down to (b) and (d). Not too sure whether the use of pseudo-numbers will improve the accuracy of monte carlo as my understanding is that pseudo will only help to achieve a certain level of accuracy faster as compared to random numbers. I a...

<t>Hi,I am trying to figure out why using the transformation x= Ln(S) is computationally more efficient when using finite difference methods . Can anyone share with me why we use this transformation ? One reason that I can think of is that after the transformation, the differential equation will hav...

<t>Hi, I am trying to figure out why using the transformation x= Ln(S) is computationally more efficient when using finite difference methods . Can anyone share with me why we use this transformation ? One reason that I can think of is that after the transformation, the differential equation will ha...