What question did this study set out to answer?

The aim is to improve pricing for European and American Parisian and ParAsian options using advanced tree models.

Pricing Parisian and ParAsian Options by a Vectorized Binomial or Trinomial Tree

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Randomized trial demonstrates pricing accuracy of Parisian and ParAsian options, indicating potential for advanced financial modeling.

The aim is to improve pricing for European and American Parisian and ParAsian options using advanced tree models.
Extended binomial and trinomial trees to track multiple option prices simultaneously at each node.
Developed a method to optimize the number of time-steps for more accurate price estimates.
Applied vectorized tree models for complex option types, including American double barrier Parisian options.
Achieved more precise price estimates for exotic path-dependent options such as American double barrier Parisian options.
Successfully priced look-back options with improved accuracy compared to traditional methods.

Wu et al. (2026) studied this question.

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