I have implemented a monte carlo pricer for an option. I simply don't know how many decimals I need to include in the quoted price. Can anyone please provide guidelines?

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    $\begingroup$ Most exchange-traded options trade in pennies (2 digits past the decimal point); FOREX options trade in pips (4 digits past the decimal point). Some FOREX brokers will quote the underlying in decipips (5 digits past decimal), but I haven't seen anyone do this for options (yet...?) $\endgroup$ – user59 Oct 15 '11 at 19:39

Go to the website of the exchange that lists the option you care about and look at the contract specifications for that option.


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