When Computing ∂V/∂r, What Is the Difference Between "Central Approx-

question 2

Essay

When computing ∂V/∂r, what is the difference between "Central Approx- imation" and "Forward Approximation"? Which one is closer to the true value?

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Definitions:

Payment Date

The specified date on which a payment, such as a dividend or bond interest, is made by a company to its shareholders or bondholders.

Negotiable

Something that can be discussed or altered in order to reach an agreement; in finance, refers to instruments like checks or bills of exchange that can be transferred to another party.

Optional Payment

A payment made by choice as opposed to requirement, often seen in loan agreements where the borrower may pay more than the minimum due.

Maturity Date

the specific date on which a financial instrument, such as a loan or bond, reaches its expiration and the principal is due to be repaid.