Monte Carlo simulation | Practical Law

Monte Carlo simulation | Practical Law

Monte Carlo simulation

Monte Carlo simulation

Practical Law UK Glossary 5-204-1157 (Approx. 2 pages)

Glossary

Monte Carlo simulation

A statistical simulation technique which can be used as a method of determining the value of share options or awards under an employee share incentive arrangement. It is most commonly used to value awards with a market-based performance condition such as total shareholder return.