The simulated payoffs are then not simply averaged as in the case of a simple Monte Carlo, but are first multiplied by the likelihood ratio between the modified probability distribution and the original one (which is obtained by analytical formulas specific for the probability distribution).
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The simulated payoffs are then not simply averaged as in the case of a simple Monte Carlo, but are first multiplied by the likelihood ratio between the modified probability distribution and the original one (which is obtained by analytical formulas specific for the probability distribution).
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