A Robust Spline Collocation Method for Pricing American Put Options

<table class="fixed-width table-group" id="tab2"><tr><td><table class="table"><colgroup><col style="width:3.04em"/><col style="width:3.04em"/><col style="width:5.15em"/><col style="width:3.43em"/></colgroup><tr><td class="thead-hr" colspan="4"><hr/></td></tr><tr class="thead"><td class="align_left"><i> K</i></td><td class="align_center"><i> N</i></td><td class="align_center"> error </td><td class="align_center"> rate </td></tr><tr><td class="thead-hr" colspan="4"><hr/></td></tr><tr><td class="align_left">1024</td><td class="align_center"> 128</td><td class="align_center"> 8.6028e-3</td><td class="align_center"> 2.031</td></tr><tr><td class="align_left"> </td><td class="align_center"> 256</td><td class="align_center"> 2.1045e-3</td><td class="align_center"> 2.097</td></tr><tr><td class="align_left"> </td><td class="align_center"> 512</td><td class="align_center"> 4.9176e-4</td><td class="align_center"> 2.451</td></tr><tr><td class="align_left"> </td><td class="align_center"> 1024</td><td class="align_center"> 8.9918e-5</td><td class="align_center"> -</td></tr><tr class="table-tr"><td colspan="4"><hr class="tbody-hr"/></td></tr></table></td></tr></table>

<div>Error estimates and convergence rates for Example <a href="https://static.hindawi.com/articles/ddns/volume-2019/1753782/figures/#ex2" target="_blank">2</a>.</div>

Discrete Dynamics in Nature and Society

A Robust Spline Collocation Method for Pricing American Put Options

Table 2