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Re: Question on registerWith for evaluationDates

Posted by Luigi Ballabio on Apr 09, 2010; 8:07pm
URL: http://quantlib.414.s1.nabble.com/Question-on-registerWith-for-evaluationDates-tp6582p6583.html


On Apr 9, 2010, at 9:55 PM, Tawanda Gwena wrote:

> I have the simple problem of trying to change the evaluation date  
> for a basic option. For some reason I cannot seem to set the  
> observer to work properly. I want to work out the price of an option  
> on 15 May 2009 and 10 May 2010. The option expires on 17 May 2010.
>
> If I set the evaluation date to after expiry I (rightly) get the  
> value of the option to be 0.
>
> Here is some code which I have. How can I fix/understand this?
>
>     Handle<YieldTermStructure> flatTermStructure(
>                                 boost::shared_ptr<YieldTermStructure>(
>                                              new  
> FlatForward(settlementDate,
>                                                              
> riskFreeRate,
>                                                              
> dayCounter)));

If you use the FlatForward constructor that takes a reference date,  
the curve will keep calculating discounts from that date, no matter  
where you move the evaluation date.  Use the constructor taking a  
number of settlement days instead, and the reference date will move  
with the evaluation date.

Luigi


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