Before revision:  We analyze the stability of the algorithm when the number of exercise dates increases and prove that  if the underlying process for the stock price is continuous  then the regression problem is ill-conditioned for small values of parameter t, time .
After revision:  We analyze the stability of the algorithm when the number of exercise dates increases and prove that , if the underlying process for the stock price is continuous then the regression problem is ill-conditioned for small values of parameter t, time .