[SOLVED] Cqf exam 2 (module 3)

Instructions: This is a mini project on the use of the Monte Carlo scheme to price exotic options to be completed using Python. C++ is also allowed, but Excel/VBA is not permitted. As this is the half way point of the CQF, this assessment is designed for delegates to show independence and maturity in interpretation of a slightly open ended problem. It will testnding and understanding the relevant lectures, Python labs and tutorials in module 3; as well as the Python primer. ability to experiment and demonstrate initiative in mathematical and numerical methods.willingness to work outside narrow instruction that are typical of maths based tests/exams.Queries FAO Riaz Ahmad on zendeskUse the expected value of the discounted payo under the risk-neutral density QV (S;t) = e ^{r(T t)}E^Q [Payo (S_T)]for the appropriate form of payo, to consider Asian and lookback options.Use the Euler-Maruyama (only) scheme for initially simulating the underlying stock price. As an initial example you may use the following set of sample dataThen vary the data to see the aect on the option price. Your completed assignment should centre on a report to include:Outline of the nance problem and numerical procedure used.Results appropriate tables and comparisons.Any interesting observations and problems encountered.Conclusion and referencesFor a Python Jupyter Notebook, a detailed notebook will become the complete report (writeup, code, results).1Score key60-65 Pass66-70 Good71-79 Very Good80-89 Excellent90-95 Outstanding96+ ExceptionalNote: An assessment of this form diers from mathematical exercises that can attract full marks. The key above is provided for this reason.2