Salīdzināt metodes

	Longstaff-Švarca metode	Vietējā volatilitāte (Dupire)
Nozare	Kvantitatīvās finanses	Kvantitatīvās finanses
Saime	Machine learning	Regression model
Izcelsmes gads	2001	1994
Autors	Francis A. Longstaff and Eduardo S. Schwartz	Bruno Dupire
Tips	Valuation Algorithm	Equity/FX Model
Pirmavots	Longstaff, F. A., & Schwartz, E. S. (2001). Valuing American options by simulation: A simple least-squares approach. Review of Financial Studies, 14(1), 113-147.	Dupire, B. (1994). Pricing with a smile. Risk Magazine, 7(1), 18-20.
Citi nosaukumi	LSM, Least-Squares MC, Optimal Stopping	Deterministic Volatility Function, DVF
Saistītās	4	4
Kopsavilkums	The Longstaff-Schwartz method (2001) is a Monte Carlo algorithm for pricing American options and Bermudan swaptions by approximating the optimal exercise boundary via least-squares regression. It has become the industry standard for pricing path-dependent derivatives where analytical solutions do not exist.	Dupire's local volatility model (1994) is a deterministic framework that extracts a term and strike-dependent volatility function from market option prices. Unlike constant volatility, local volatility perfectly fits the observed implied volatility smile and is implemented via finite difference methods for European and American option pricing.