Fwd: implied vol + the greeks

Posted by tallent_e on
URL: http://quantlib.414.s1.nabble.com/Fwd-implied-vol-the-greeks-tp173.html

hi all.

i want to make 2 questions.

1)
i have a question regarding the extreme values of impliedVolatility, described at http://quantlib.org/reference/class_quant_lib_1_1_vanilla_option.html#95c0837ce9c4bcc4cb9b9ff975f3bfe1

there, it reads :
Volatility impliedVolatility(
 Real price,const boost::shared_ptr & process,
 Real accuracy = 1.0e-4,
 Size maxEvaluations = 100,
 Volatility minVol = 1.0e-7,
 Volatility maxVol = 4.0 )
 const

i am OK with all the parameters, the latest expected.
isn't there a problem with maxVol ?  i mean wouldn't it makes sense to allow a higher volatility value ?

i wrote a short piece of code, with a maxVol value = 1.0e4 . that works. but, it doesn't if i write 4.0.
 

2) i wrote my c++/quantlib code. i then benchmarked my results against the E.Haug's excel pricer (the complete guide ...).
fortunately, my calculation results are right (cool!) expect that i have to divide the Rho and Vega obtained values by 100 to get Haug's results.
that is a matter of % i guess, but i don't understand where/why it comes into play.

i posted my code on my blog site (http://quantcorner.wordpress.com/2011/02/06/quantlib-the-greeks-and-other-useful-option-related-values/), if you wish to have a look at it.

thank you
édouard

--
http://quantcorner.wordpress.com

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