Financial Risk Manager Part 1
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A hedge fund's risk manager intends to conduct a simulation to forecast the future stock price of a particular company. This involves simulating future values for both a European option and an Asian option on the company's stock, with both options set to expire on the same future date. The manager is also exploring different methodologies to improve the accuracy of the simulation. Which of the following statements correctly describes the standard techniques employed to reduce sampling error?
A hedge fund's risk manager intends to conduct a simulation to forecast the future stock price of a particular company. This involves simulating future values for both a European option and an Asian option on the company's stock, with both options set to expire on the same future date. The manager is also exploring different methodologies to improve the accuracy of the simulation. Which of the following statements correctly describes the standard techniques employed to reduce sampling error?
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