Re: BSMTermOperator

Posted by Luigi Ballabio on
URL: http://quantlib.414.s1.nabble.com/BSMTermOperator-tp3571p3572.html

On 02/04/05 05:58:12, Joseph Wang wrote:
> I've upload onto the wiki
>
> http://wiki.quantlib.org/twiki/bin/view/Quantlib/FiniteDifferencePricingEngines
>
> a first pass at an operator called BSMTermOperator.

Joseph,
        that implementation might not have worked (TimeSetter::setTime()  
had the wrong signature, and passing your operator to classes expecting a  
TridiagonalOperator instance might have sliced it and destroyed the time-
setting logic.) I've uploaded a modified (and untested) version.
You might want to try it out.

> The bad news is that it is probably going to be a lot more  
> computationally intensive.

Yes, setTime() will be called at each step during rollback.

> Something that occurs to me is that you can easily generate these  
> operators from a process.  So one could
> make a black scholes process called SimpleBlackScholesProcess that  
> generates a "fast operator" with a lot of the mathematical  
> simplifications in place, while another black scholes process can  
> generate a fully general operator object.

True, but to keep interfaces slim I wouldn't have the process itself  
generate the operator--I'd prefer some function dispatching on the process  
type...

Later,
        Luigi


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