Question
What model is better suited for pricing a swing option? a. Binomial, because it is easiest to implement b. Black-Scholes, because the assumptions of the
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What model is better suited for pricing a swing option?
| a. | Binomial, because it is easiest to implement | |
| b. | Black-Scholes, because the assumptions of the model hold for swing options | |
| c. | Black-Scholes, because swing options are European options | |
| d. | Binomial, because it accommodates the possibility of early option exercise |
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
