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Re: Black-Scholes Process required in MCHimalayanEngine

Posted by Andreas Spengler-2 on Nov 27, 2010; 7:39pm
URL: http://quantlib.414.s1.nabble.com/Black-Scholes-Process-required-in-MCHimalayanEngine-tp12097p12101.html

Am 27.11.2010 19:36, schrieb Marcin Pawlik:

> What I'm trying to propose is to emulate GeometricBrownianMotion (GBM
> for short) with an instance of GeneralizedBlackScholesProcess (GBSP
> for short). Since you cannot instantiate GBSP with constants as you're
> doing it with GBM

The GBM has no constant coefficients, since it's coefficients are
dependant on S also.

That's why I want to use a GBM; it represents a different SDE.

I can adapt the MCHimalayaEngine to get the riskFreeRate from somewhere
else, but my original question was, whether there is anywhere deep in
the MC code that also demands the StochasticProcess derived class to
actually be a (Generalized)BlackScholesProcess...


Rgds,

Andreas

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