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What are Pros and cons of different methods

What are Pros and cons of different methods?

Answer:

Table illustrates the Pros and cons of different methods.

Subject

FD

MC

Quad.

Low dimensions

 Good

 Inefficient

 Good

High dimensions

 Slow

 Excellent

 Good

Path dependent

 Depends

 Excellent

 Not good

Greeks

 Excellent

 Not good

 Excellent

Portfolio

 Inefficient

 Very good

 Very good

Decisions

 Excellent

 Poor

 Very poor

Non-linear

 Excellent

 Poor

 Very poor

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