Option Pricing, Numerical Methods, Monte Carlo, Monte Carlo Simulation.
u[::-1] vm = np.zeros((N+1, M+1)) # Initialize the boundary conditions if option_type == "call": vm[:, 0] = 0.0 vm[:, M] = u[M] - u else: vm[:, 0] = u - u[0] vm[:, M] = 0.0 # Iterate over the time steps for i in range(N): for j in range(1, M): vm[i+1, j] = pu * vm[i, j-1] + pm * vm[i, j] + pd *