Numerical Analysis Questions
The concept of numerical methods for option pricing in Numerical Analysis involves using mathematical algorithms and techniques to calculate the value of financial options. These methods aim to approximate the complex mathematical models used to determine option prices, such as the Black-Scholes model, by breaking them down into simpler calculations that can be solved numerically. This allows for efficient and accurate pricing of options, taking into account factors such as the underlying asset price, volatility, time to expiration, and interest rates.