Abstract
We study 70 different lattice implementations, which include a new tree capable of node adjustment and the use of a new barrier hitting probability modification, to investigate the speed of convergence for pricing American barrier options numerically. The models are assessed for both well-behaved and difficult parameters case. Where the parameters are tractable, we conclude that the method of nodes adjustment is the most efficient with respect to the balance of speed and accuracy. For barrier options that cannot be evaluated this way, probability adjustment modification is the most optimal technique in this region.
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