Which of the following is NOT true about Finite Difference methods? A) Finite difference methods can deal with American-style options B) Finite difference methods cannot easily deal with path-dependent options C) Delta and vega are a byproduct of the finite differences computations D) Finite difference methods iterate backwards backwards in time to compute the option value.

Advanced Engineering Mathematics
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ISBN:9780470458365
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Chapter2: Second-order Linear Odes
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Which of the following is NOT true about Finite Difference methods?
A) Finite difference methods can deal with American-style options
B) Finite difference methods cannot easily deal with path-dependent options
C) Delta and vega are a byproduct of the finite differences computations
D) Finite difference methods iterate backwards backwards in time to compute the option value.
Transcribed Image Text:Which of the following is NOT true about Finite Difference methods? A) Finite difference methods can deal with American-style options B) Finite difference methods cannot easily deal with path-dependent options C) Delta and vega are a byproduct of the finite differences computations D) Finite difference methods iterate backwards backwards in time to compute the option value.
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