Generating realistic stock price paths is a key component of many financial models. In this notebook, we will generate stock price paths using a geometric Brownian motion (GBM) model. The GBM model is a stochastic differential equation that describes the evolution of a stock price over time. It is widely used in finance because it captures the key features of stock price movements, such as random fluctuations and long-term trends.
Javascript observable example here.
Javascript port here.