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Re: GJR-GARCH option pricing engine

Posted by Yee Man Chan on Mar 11, 2008; 6:21pm
URL: http://quantlib.414.s1.nabble.com/GJR-GARCH-option-pricing-engine-tp11799p11805.html

Hi Luigi

   Thanks for your reply. Are you still at Stanford?
Maybe we can hang out one day.

   I will start coding then. It shouldn't be too hard.
I can just copy the Heston code and change the
stochastic process for volatility. I also have an
implementation for analytical approximation of
GJR-GARCH option pricing model as described in Duan
2004 paper.

   Do you guys give out remote CVS access for
developers? That's what I got for my previous open
source contribution. If this is not how it works here,
I am ok sending files directly to Luigi.

Have a great day!
Yee Man

   

--- Luigi Ballabio <[hidden email]> wrote:

> Hi Yee Man,
>
> On Thu, 2008-03-06 at 17:20 -0800, Yee Man Chan
> wrote:
> >    I recently finished my implementation of
> > GJR-GARCH(1,1) option pricing model for European
> > options using QMC with Brownian Bridge.
> >
> >    I find that you guys don't have this pricing
> model.
> > Do you mind if I implement this for Quantlib?
>
> I'll be happy if you do.
>
> > If so, how should I proceed?
>
> You can send me the files and I'll add them to the
> repository.
> You should code your model as a pricing engine; if
> you're not yet
> familiar with our pricing framework, you can read
> chapter 2 at
> <http://luigi.ballabio.googlepages.com/qlbook> for
> an introduction.
> Also, it should use the existing facilities for
> random-number
> generation. As an example, you can look at the
> current MC engine for
> European options in
> <ql/pricingengines/vanilla/mceuropeanengine.hpp>.
>
> Later,
> Luigi
>
>
> --
>
> Every solution breeds new problems.
> -- unknown
>
>
>



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