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[monte_carlo] updates and editorial suggestions #417

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merged 1 commit into from
Apr 12, 2024
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longye-tian
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Related to Editorial suggestion #414, in particular,

Code

  • Change global variables to default_param (i.e. default_μ).
  • Distinguish the function name in the exercise solution and the one in the main text.

Content

  • "we write this statement as" - > "We write this statement as"
  • Capitalize only the first bullet point below: "This is the Monte Carlo method, which runs as follows:"
  • change another lecture to myst doc link
  • "Pricing a european call option under risk neutrality" -> "Pricing a European call option under risk neutrality"
  • "Risk-Neutral Pricing" -> "Risk-neutral pricing"
  • "$S_0$ is normally distributed" -> "$S_0$ is log-normally distributed"

Revised under Editorial suggestion #414
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@longye-tian longye-tian requested a review from jstac April 10, 2024 04:58
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@github-actions github-actions bot temporarily deployed to pull request April 10, 2024 05:00 Inactive
@@ -136,12 +136,12 @@ But fortunately there's an easy way to do this, at least approximately.
This is the Monte Carlo method, which runs as follows:

1. Generate $n$ independent draws of $X_1$, $X_2$ and $X_3$ on a computer,
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Suggested change
1. Generate $n$ independent draws of $X_1$, $X_2$ and $X_3$ on a computer,
1. generate $n$ independent draws of $X_1$, $X_2$ and $X_3$ on a computer,

Comment on lines +488 to 493
default_μ = 0.0001
default_ρ = 0.1
default_ν = 0.001
default_S0 = 10
default_h0 = 0
```
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@longye-tian I wonder if this would be better setup as a named tuple called defaults so that would then be referenced as defaults.μ as a tidier solution.

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mmcky commented Apr 11, 2024

thanks @longye-tian just had some questions re: variable choice.

@mmcky mmcky changed the title update_monte_carlo [monte_carlo] updates and editorial suggestions Apr 11, 2024
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jstac commented Apr 12, 2024

Many thanks @longye-tian and thanks @mmcky for the review.

@mmcky 's suggestions are good but time is short so let's go ahead and merge this.

@jstac jstac merged commit 240e65f into main Apr 12, 2024
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@mmcky mmcky deleted the update_monte_carlo branch April 17, 2024 06:02
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3 participants