In this blog we want to demonstrate the power of Octave for doing simulations. Specifically we will take a look at the Black Scholes formula and how fast an option price computed using Monte Carlo simulation will converge to the actual value using the closed-form solution. The idea is to demonstrate how Octave can be used for this kind of simulations. In a previous blog we showed how to created plots, so here will will focus on the simulation only. The mantra when using Octave is "use vectors and matrices". If you can pull that off, your code will be efficient. On the other hand if you need to resort to for-loops, that will slow things down significantly.
Octave analysis of Deutsche Bank
In this blog the basics of generating and saving plots to file using Octave will be demonstrated. We are going to make plots and do some basic data analysis on the Deutsche Bank stock prices. Deutsche has been under pressure these last days, which rose our curiosity.
Deutsche Bank shares collapsed by nearly 7% taking it close to a 30-year low on Thursday evening following reports that hedge funds were pulling assets from it amid suggestions the German government may be forced to bail it out.
Deutsche Bank's share price approaches 30-year low -The Guardian