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6. (a) State whether or not the Binomial Method and the Monte Carlo method are naturally suited to computing accurate approximations of the following options.

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6. (a) State whether or not the Binomial Method and the Monte Carlo method are naturally suited to computing accurate approximations of the following options. (i) A Bermudan call option. (ii) A Strathclyde call option, which has a payoff at expiry date T given by max0tTS(t)min0tTS(t) (iii) A Bonus call option, which has a payoff at expiry date T given by S(T) if S(T)E and E if S(T)

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