I am trying to understand the purpose of inputs the software of my company is using. Amongst others it needs calibration instruments, a model type, initial values of the respective underylings and a yield curve. Furthermore one can input the forward price curve of the respective underlyings. The pricing of derivatives is done by Monte Carlo. Where in the pricing pipeline would it be possible/useful to use the forward price curve?
The forward curve is not passed directly. Instead a repocurve is passed which is calculated by adding a bump to the yield curve