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Price European or American basket options using Monte Carlo simulations

`[Price,Paths,Times,Z] = basketbyls(RateSpec,BasketStockSpec,OptSpec,Strike,Settle,ExerciseDates)`

`[Price,Paths,Times,Z] = basketbyls(___,Name,Value)`

`[`

prices basket options using the Longstaff-Schwartz model.`Price`

,`Paths`

,`Times`

,`Z`

] = basketbyls(`RateSpec`

,`BasketStockSpec`

,`OptSpec`

,`Strike`

,`Settle`

,`ExerciseDates`

)

For American options, the Longstaff-Schwartz least squares method is used to calculate the early exercise premium.

[1] Longstaff, F.A., and E.S.
Schwartz. “Valuing American Options by Simulation: A Simple Least-Squares
Approach.” *The Review of Financial Studies.* Vol. 14, No. 1,
Spring 2001, pp. 113–147.