Monte Carlo Variance Reduction using Antithetic Variates (FRM Part 1, Quantitative Analysis)

In this video from FRM Part 1 curriculum, we take a look a the antithetic variates technique to reduce the standard error of our Monte Carlo based estimator. This technique simulates the chosen variable as a pair of values - with the members of the pair having a negative dependence amongst themselves. This negative dependence reduces the variance of the estimator and hence, the standard error. For more videos on FRM Part 1 preparation, please visit the course page: https://www.finRGB.com/courses/frm-part-1-online-course.