What is the go-to method for pricing of Bermudan/American options?
I've heard the Longstaff-Schwartz method is really popular. Is it better than the other methods generally speaking? If not, which method is usually considered the best?
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Binomial tree is better for american style options. I've already done comparison between LS montecarlo and binomial tree and i found that binomial tree gives more precise results for the same computation time.
For comparison, you know that european call and american call with the same inputs and zero dividend should give the same price. So, I've defined as a reference european call black & scholes prices and compared it with american calls prices using Binomial tree and LS montecarlo. Finally, i found that using binomial tree, the results were closer to the black scholes ones.
You can test it using my online pricing website ValoMetrics.com.