@Risk Is an Excel^® Add-In That Can Be Used to Run

question 6

True/False

@Risk is an Excel^® add-in that can be used to run replications of a simulation, keep track of outputs, create useful charts, and perform sensitivity analyses.

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Definitions:

Premium

An additional payment above the nominal or face value of a transaction, security, or insurance policy.

Option Contract

A contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a given date.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Futures Contracts

Standardized legal agreements to buy or sell something at a predetermined price at a specified time in the future, often used for commodities or financial instruments.