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Implementation of European option pricing using the Black-Scholes formula

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JoshMusira/Monte_Carlo_Simulation

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European Option Pricing

Overview

This project is a Python implementation of European option pricing using the Black-Scholes formula and Monte Carlo simulation techniques.

Features

  • Calculate the price of European call and put options using the Black-Scholes formula.
  • Perform Monte Carlo simulations to estimate option prices and analyze risk.
  • Visualize option pricing results using histograms and density plots.

Dependencies

  • Python 3.x
  • numpy
  • scipy
  • matplotlib
  • pandas

Usage

  1. Install dependencies:
    pip install numpy scipy matplotlib pandas yfinance

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