SwaptionVolCube and SwaptionVolCube2

Posted by Ramon Lozano on
URL: http://quantlib.414.s1.nabble.com/SwaptionVolCube-and-SwaptionVolCube2-tp6201.html

Hi,

    I have a couple of questions regarding the proper initialization of SwaptionVolCube2. The constructor of SwaptionVolCube2 is as follows:

SwaptionVolCube2(
            const Handle<SwaptionVolatilityStructure>& atmVolStructure,
            const std::vector<Period>& optionTenors,
            const std::vector<Period>& swapTenors,
            const std::vector<Spread>& strikeSpreads,
            const std::vector<std::vector<Handle<Quote> > >& volSpreads,
            const boost::shared_ptr<SwapIndex>& swapIndexBase,
            const boost::shared_ptr<SwapIndex>& shortSwapIndexBase,
            bool vegaWeightedSmileFit);

My questions are:

1. What is swapIndexBase ? Does swapIndexBase represent the underlying swaps for the quoted vols in the swaption vol cube?
3. What is shortswapIndexBase ?

I looked at swaptionvolcube.cpp where it is used and cannot figure out from the code what exactly these two parameters represent.

thanks
ramon

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