How can I perform a Monte Carlo simulation on a stochastic process?

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As stated in the title, I need to perform a Monte Carlo simulation on a stochastic process. I would like to have, if possibile, both the code and a quick explanation for the strings that will be written. The assignment is:
Thank you.

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Image Analyst
Image Analyst 2017-1-28
You can use the rand() function. For what it's worth, I'm attaching some Monte Carlo demos I have.

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