agulani

Thanks. So confused. For Monte carlo method , each node has to add OAS to compensate for the optionality. while OAS already dedcucted the Optionality and leaves only (liquidity +credit risk). if they value the bond with option , they should keep the optionlity in the spead to compensate for the risk, why use OAS ( without the otptionlity).
Really appreciate your time. please add some comments