What Technique Might Be Used to Improve the Accuracy of a Monte

question 6

Multiple Choice

What technique might be used to improve the accuracy of a Monte Carlo simulated output?

• A) Arithmetic Asian option
• B) Control variate method
• C) Poisson Distribution with jumps
• D) Risk neutral probabilities

---

Definitions:

Cardiovascular System

The system comprising the heart and blood vessels that circulates blood throughout the body, delivering oxygen and nutrients while removing carbon dioxide and other wastes.

Integumentary System

The organ system that includes the skin, hair, nails, and exocrine glands, serving as a protective barrier for the body.

Subcutaneous Layer

The layer of tissue directly beneath the skin that contains fat and connective tissues, providing insulation and cushioning to the body.

Depression

A mental health disorder characterized by persistent sadness, loss of interest in activities, and a range of emotional and physical problems.