What Is the Main Trade-off between the Binomial Model and Numerical Methods Based on Black-Scholes?

The main trade-off is between computational speed and accuracy. The Binomial Model is conceptually simpler and easier to implement but can be computationally slower for high accuracy, as it requires many steps.

Numerical methods based on Black-Scholes, like finite difference, can be faster and more accurate but are mathematically more complex to set up.