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Sobol sequences: question regarding correct usage

Posted by langda tyagi on May 05, 2011; 7:40pm
URL: http://quantlib.414.s1.nabble.com/Sobol-sequences-question-regarding-correct-usage-tp8749.html

Hi,
 
I am using QuantLib, but my question is somewhat more conceptual in nature, and was hoping someone might have an answer. 

I am valuing a derivative (european style) with 45 underlying stock prices, to be averaged over last 90 days of the term. 

I am using Quasi Random nos (sobol), but not sure I am doing it right. 

First I am not sure what is the dimension that I should sample the sobol for.  

Is it: 

a.  45 (one for each stock)

b.  90 (one for each day)

c.  4050 (45 * 90, though I suspect in this case using quasi random nos might not be suitable)

 
I would really appreciate your inputs on this, or if you could point me in some direction.
 
 
regards
 
Tyagi
 
 

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