Practice Options
Price a barrier option three ways
Medium+25 pointsAbout 50 minutesOptions
Coming soon
Price a knock-out call with a formula, a tree and simulation, and explain which method to trust near the barrier.
This problem opens with Derivatives Modelling. It draws on the modules below.
- Derivatives 1.9 Choosing a numerical method (coming soon)
- Derivatives 1.10 Exotic options (coming soon)