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0.01352826 S0 = $1000, so the price at the end of the first day is: S0 = 1000 S1 = $1,000+($1,000)⋅(0.01353) = $1,013.53 S1 = S0 + S0*ΔS0 S1 1013.52826 You should recognize that ΔS is just a percentage change in the stock price. Monte Carlo Simulation — Example 2 Suppose on the second simulated day