QuantLib_ExtendedBlackScholesMertonProcess (3) - Linux Manuals

QuantLib_ExtendedBlackScholesMertonProcess: experimental Black-Scholes-Merton stochastic process

NAME

QuantLib::ExtendedBlackScholesMertonProcess - experimental Black-Scholes-Merton stochastic process

SYNOPSIS


#include <ql/experimental/processes/extendedblackscholesprocess.hpp>

Inherits QuantLib::GeneralizedBlackScholesProcess.

Public Types


enum Discretization { Euler, Milstein, PredictorCorrector }

Public Member Functions


ExtendedBlackScholesMertonProcess (const Handle< Quote > &x0, const Handle< YieldTermStructure > &dividendTS, const Handle< YieldTermStructure > &riskFreeTS, const Handle< BlackVolTermStructure > &blackVolTS, const boost::shared_ptr< discretization > &d=boost::shared_ptr< discretization >(new EulerDiscretization), Discretization evolDisc=Milstein)

Real drift (Time t, Real x) const

Real diffusion (Time t, Real x) const

Real evolve (Time t0, Real x0, Time dt, Real dw) const

Detailed Description

experimental Black-Scholes-Merton stochastic process

This class allows to choose a built-in discretization scheme

Member Function Documentation

Real drift (Time t, Real x) const [virtual]

Possible enhancements

revise extrapolation

Reimplemented from GeneralizedBlackScholesProcess.

Real diffusion (Time t, Real x) const [virtual]

Possible enhancements

revise extrapolation

Reimplemented from GeneralizedBlackScholesProcess.

Real evolve (Time t0, Real x0, Time dt, Real dw) const [virtual]

returns the asset value after a time interval $ Delta t $ according to the given discretization. By default, it returns [ E(x_0,t_0,Delta t) + S(x_0,t_0,Delta t) dot Delta w ] where $ E $ is the expectation and $ S $ the standard deviation.

Reimplemented from StochasticProcess1D.

Author

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