
Basic Monte Carlo Simulation in Spreadsheets 33
contract length of 24 months. The Insert to Sheet button presents us with
a number of options: We can paste the Distribution, other variants on the
Distribution (such as the cumulative distribution, the inverse of the func-
tion, etc.), or an Object (covered in Chapter 3). In this case, we will paste the
distribution here. We then perform the same steps for the price sensitivity
parameter in cell B5 of Figure 1.1. After pasting the distribution into cell
B5 and slightly adjusting our model to reect the time value of money, our
spreadsheet formulas are shown in Figure2.8.
The discount rate ...