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ARTÍCULO
TITULO

Valuation of Discrete Barrier American Options

Giuliano Carroza Uzêda Iorio de Souza    
Carlos Patrício Samanez    

Resumen

This article presents an approach and a model to valuing discrete barrier American options. The developed model consists of an adaptation of the method of Grant, Vora and Weeks (1997), in order to allow to incorporate the barriers. The Hybrid Quasi-Monte Carlo method was used in the simulations and the Bisection method in the definition of the options trigger curves. The results found in the application of the developed model were compared with the estimated by the Adaptive Mesh Model, developed by Ahn et al (1999). In addition, the sensitivity of the options price relative to changes in inputs parameters was analyzed, confirming the consistence of the model.

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