medium · Quantitative Finance numerical
In the context of the Central Limit Theorem, how does the use of antithetic variates affect the convergence rate of a Monte Carlo simulation?
- It eliminates the need for the Central Limit Theorem by making the estimator exactly normal
- It leaves the O(1/√(M)) rate unchanged but reduces the constant of proportionality
- It only improves convergence if the number of paths M is a power of two
- It improves the convergence rate to O(1/M)
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