Pricing European and American Installment Options

This paper derives accurate and efficient analytic approximations for the prices of both European American continuous-installment call put options. The solutions are in form series time-to-expiry with explicit formulae coefficients provided. Unlike other installment options, no Laplace inverses needed, there is need to solve complex, recursive systems or integral equations. provided fast yield not just prices, but also critical boundaries. We compare those obtained using an existing method show that it surpasses delivering more correct option stock prices.