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bisection algorithm
(redirected from Bisection method)

   Also found in: Wikipedia 0.01 sec.
bisection algorithm [′bī‚sek·shən ′al·gə‚rith·əm]
(mathematics)
A procedure for determining the root of a function to any desired accuracy by repeatedly dividing a test interval in half and then determining in which half the value of the function changes sign.


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SASS is an adaptive step-size method, it is based on the bisection method for minimization in one dimension, in which the minimum of a valley is round by taking a step in the descent direction of half the previous step.
Modifying the option valuation model to use a bisection method (see sidebar "A Method for Partitioning Value") that simultaneously determines the optimal stock price and option value yields the results shown in Exhibit 2.
 
 
 
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