Table of Contents
 

Lesson 4: When we build a price-path histogram with the simulator, the shape of the histogram approximates a bell-shaped curve.

To see the shape of our histogram more clearly, let's build it again and, this time, draws its outline.

(If you haven't already, to open the simulator, click the link at top right of this page. To jump quickly back and forth between the lesson and the simulator, hold down the Alt key on your keyboard and tap the Tab key.)

Type 4 in the Run Lesson Number box. Click Run Lesson Number.

The shape of the histogram closely approximates a bell shaped curve.

To continue to the next lesson, click arrow at top right of this page or...

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Option Pricing: Black- Scholes Made Easy
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Buy a coastal condo four miles south of downtown San Diego for less than $200,000

 

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Stock options -- The Movie