Which of the following statements is most valid for the recursive programming of a binomial tree for pricing options?
A) The recursive program requires more lines of code than a non-recursive loop-driven program.
B) The recursive program requires less computer memory than a non-recursive loop-driven program.
C) The recursive program runs slower than a non-recursive loop-driven program.
D) The recursive program runs in polynomial time whereas a non-recursive loop-driven program runs in exponential time.

Question

Quizplus · Accepted Answer

Recursive programming can often lead to slower performance due to the extra overhead involved in calling and returning from functions. However, the other statements are not necessarily true. A recursive program may require less lines of code and/or less computer memory depending on the implementation. The binomial tree method itself involves exponential complexity, so even a non-recursive loop-driven program would likely run in exponential time.

Which of the Following Statements Is Most Valid for the Recursive