Pricing Barrier Options using Monte Carlo Simulation in Python
Published in
6 min readMay 17, 2022
Modelling Exotic Options
When modelling exotic options, one has to make a fundamental decision very early in the process: should you model the option in a continuous-time, Black-Scholes type of model, or in a binomial model.
- Generally many exotic options are initially priced via a binomial model, and then at some…
