Other more general option pricing problems seem immune to reduction to a simple formula. Instead, numerical procedures must often be employ to price these more complex options. Following the approach of Michael Brennan and Edwardo Schwartz [1977], the Black-Scholes differential hedger ng equation is first reduced to a discrete-time difference equation and then the option price is obtained by somewhat elaborate numerical pro cedures. In contrast, the binomial formulation, by its very construction gives rise to an alternative numerical procedure which is both far simpler and, for many purposes, computationally more efficient