>1) If cashflows are not path dependent then we can use binomial tree and Monte carlo simulation
and if cashflows are path dependent then we can use only monte carlo simulation
is this correct ?
>2) and suppose options are inserted then its interest rate dependent so only monte carlo simulation and binomial tree is used , and not benchmark spot rate curve
is this correct ?
for 2.
yes it is correct, spot rate curve method can not be used for option embedded bonds.
for1
I think we can only use binomial tree when CF is path dependent bcz monte carlo considers all the paths to value bond which may be incorrect bcz of path dependency.