When using a GBM under a risk-neutral measure to simulate stock prices, we have to use the risk-free interest rate, but how exactly do you determine what interest rate to use?
I have used the Vasicek model to price ZCB and create the term structure. So when simulating the stock prices should I use a constant risk-free rate or should it be time-dependent and follow the term structure? I was thinking it would be more correct to use the forward rate as the risk-free rate for each time period.