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Explain What Is Meant by "Simulation Is Not Limited to Using

question 52

Essay

Explain what is meant by "simulation is not limited to using the standard probability distributions."


Definitions:

Spot Exchange Rate

The current price at which one currency can be exchanged for another.

Risk-free Rates

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities like U.S. Treasury bonds.

Spot Exchange Rate

The ongoing market rate for the prompt conversion of one currency into another.

Futures Price

The agreed price for the underlying asset in a futures contract to be paid on the contract's settlement date.

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