Comment on "An appropriate approach to pricing european-style options with the Adomian decomposition method"

TL;DR

This paper critically analyzes the Adomian decomposition method for pricing European options, revealing it as essentially a Taylor series expansion, and advocates for a simpler, integral-free recurrence relation approach.

Contribution

It demonstrates that the Adomian decomposition method is equivalent to a Taylor series, simplifying the computational process for option pricing.

Findings

Adomian method is equivalent to Taylor series expansion.

Taylor approach is simpler and more straightforward.

Recurrence relation can be derived without integrals.

Abstract

We show that the Adomian decomposition method proposed by Ke et al [ANZIAM J. \textbf{59} (2018) 349] is just the Taylor series approach in disguise. The latter approach is simpler, more straightforward and yields a recurrence relation free from integrals.