Monte Carlo simulation

Mathematical technique that produces numerical solutions for differential equations. It is used extensively in finance for such tasks as pricing derivatives or estimating the value at risk of a portfolio. It is also used in insurance and risk management, typically to solve problems that require the calculation of one or more statistics of a probability distribution.

Month

Period beginning on a specific date (e.g., June 15) of any calendar month and ending on a day (July 14) of the next succeeding calendar month.