6 AMERICAN OPTION PAYOFF DYNAMICS

• 6.1 American stock options
  • 6.1.1 The American Black-Scholes model for dummies
  • 6.1.2 Parameters illustrated with VMARKET experiments
  • 6.1.3 Application
  
  
• 6.2 Methods for American options: finite elements (FEM)
  • 6.2.1 The Black-Scholes equation for American options
  • 6.2.2 Solution of the variational inequality using finite elements
  
  
• 6.3 Computer quiz
• 6.4 Exercises
• 6.5 Further reading and links
• 6.6 Quick intermediate evaluation form