Code Programs: Finite Differences and Monte Carlo in Action
Chapters 82 and 83 are the “put your money where your mouth is” chapters. After hundreds of pages of theory, equations, and diagrams, Wilmott hands you actual working code. Visual Basic code for Excel, to be precise. These are not toy examples. They implement real pricing models for real financial products, from plain American calls to exotic Parisian options to stochastic volatility to credit risk. Let me walk you through what each program does and why it matters.