Chapter 2: FAQs 141
up to three sources of randomness. They are also par-
ticularly good when the problem has decision features
such as early exercise because at each node we can
easily check whether the option price violates arbitrage
constraints.References and Further Reading
Ahmad, R 2007Numerical and Computational Methods for
Derivative Pricing. John Wiley & Sons
Wilmott, P 2006Paul Wilmott On Quantitative Finance, second
edition. John Wiley & Sons