fablin / monte-carlo-python

A dynamic Monte Carlo simulation calculator for stock options built in Python

Monte Carlo Option Pricing

This project provides a Python script to perform Monte Carlo simulations for option pricing. It's especially useful for complex options with various features and payoffs. Additionally, the project includes a Streamlit web app for visualizing the results. The final result is deployed as Monte Carlo Option Pricing Web App

Feel free to follow this Medium article for detailed instructions.

Features

• Monte Carlo simulation for option pricing.
• Visualize simulated price paths and option payoffs.
• Deployed as a Streamlit web app.

Prerequisites

• Python (3.7 or higher)
• Required Python packages (install via pip install -r requirements.txt):
  • numpy
  • matplotlib (for local visualization)
  • plotly (for web app visualization)
  • streamlit

Installation

1. Clone the repository to your local machine:

   git clone https://github.com/JKaterina/monte-carlo-python.git

2. Navigate to the project directory:

   cd monte-carlo-python

3. Install the required Python packages:

   pip install -r requirements.txt

Usage

Option Pricing Script

Run the Monte Carlo option pricing script:

python monte_carlo_sim.py

Follow the prompts to specify option parameters and view the estimated option price. The script can also be customized for your specific use case.

Web App

The project includes a Streamlit web app. To run the web app, use the following command:

streamlit run monte_carlo_app.py

This will launch the app locally, and you can access it via your web browser.

Deployed Web App

The web app is deployed and accessible online at:

Monte Carlo Option Pricing Web App

Contributing

If you'd like to contribute to this project, please follow these steps:

1. Fork the repository on GitHub.
2. Create a new branch with your changes: git checkout -b feature/your-feature-name.
3. Commit your changes and push to your branch.
4. Create a pull request to the original repository's main branch.

License

This project is licensed under the MIT License - see the LICENSE file for details.

Acknowledgments

• The Monte Carlo option pricing model is based on standard financial engineering principles.
• Special thanks to the open-source Python community for the libraries and tools used in this project.

Feel free to customize the README with additional details, project-specific instructions, and acknowledgements as needed.