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Re: Question on registerWith for evaluationDates

Posted by Tawanda Gwena on Apr 09, 2010; 8:34pm
URL: http://quantlib.414.s1.nabble.com/Question-on-registerWith-for-evaluationDates-tp6582p6584.html

Thanks!

I can now have a good weekend.


On Apr 9, 2010, at 4:07 PM, Luigi Ballabio wrote:

>
> 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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