7. (Lattice Models)

In Section 11.5 we priced an option using the CRR model to compute lattice parameters.

In this section we discuss a number of alternatives to the CRR method:

Answer the following questions:

a) Implement the above models using the function object approach taken with the class CRRLatticeAlgorithms.

b) Test the models using the data from Section 11.5. What can you say about the relative accuracy of the models for various values of the mesh size?