Re: Finite Difference Pricing Engine

Posted by Luigi Ballabio-2 on
URL: http://quantlib.414.s1.nabble.com/Finite-Difference-Pricing-Engine-tp2533p2543.html

At 02:17 PM 5/20/03 +0200, [hidden email] wrote:

>the finite difference pricers is quite slow if you need an intensive
>pricing tool.
>That's why I developped an analytical approximation to american options
>with discrete and continous dividends.
>For example, I've added the Roll, Geske, Whaley method to price American
>Call with discrete dividends like it is discribed in Hull 4th P271.
>
>It's quite simple as it changes only few files.
>I already proposed to Quantlib user group to share the code but it looks
>like it didn't received a lot of interest.

Xavier,
         my fault. I fell into the "better is enemy of good" trap. Namely,
I though "Ok, I'll integrate Xavier's pricer in the library when we switch
finite differences to the new framework---no need to do it twice." But of
course the switch is taking longer than expected, and your code is waiting
in limbo. I should have known better...

>If it's something that's look interesting you could start with my code and
>improve it  with greeks for example, it shouldn't take more than 10 hours.

Yes, I second that. Switching the existing pricers to the new framework
doesn't exactly strike me as an introductory project, or a 10-hours one.
At least, I know it would take _me_ more than 10 hours, and I know the library.

Bye,
         Luigi

P.S. Oh, and yes, I'll try and add Xavier's code to the library this time...