Tour de Monte Carlo

Slides from presentation given at the 23rd Annual NASPP Conference, San Diego, CA.

Panelists: Josh Schaeffer, PhD, Equity Methods – Phil Drake, PhD, Arizona State University – Zachary Biddle, Ernst & Young – Scott Sweeney, Novatel Wireless

This session at the 2015 NASPP unpacks the inner workings and applications of Monte Carlo simulation, illuminating the inputs and principles that drive this important but often poorly understood method of financial instrument valuation. The panelists also give context to the different challenges faced by issuers who are relying on Monte Carlo valuations, valuation practitioners who are running these models, auditors who are charged with auditing the models, and standard setters who are trying to balance complexity and accuracy.