A Practical Application of Monte Carlo Simulation for Options Pricing

Abstract In this paper, an attempt has been made to describe a practical application of the Brownian-walk Monte Carlo simulation in option pricing. This simple Monte Carlo routine is useful in option pricing and forecasting productivity, installation rates, labour trends, etc. While Monte Carlo simulation is very useful and relevant to calculate the “P50 value” Read More …

Justifying Six Sigma Projects in Manufacturing Management

Abstract This paper develops and illustrates a case in manufacturing management, using the instance of justifying quality improvement of ball bearings—a common precision product whose correct manufacture and assembly greatly affects their efficiency, utility and life. Mass-produced at high speed, bearings extend a fertile domain for benefiting from QA apparatus including Gage R&R, ISO standards, Read More …