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Model calibration

Posted by henaffp on Feb 03, 2011; 10:15am
URL: http://quantlib.414.s1.nabble.com/Model-calibration-tp8894.html

I'm experimenting with the calibration of Heston's model, but would like
to calibrate to bid/ask vol surfaces, with a quadratic penalty outside
the b/a spread. From what I can tell, the CalibrationHelper does not
allow this (it associates 1 Quote to each benchmark instrument). I have
a couple of solutions in mind, and am looking for comments:

- Subclass a BidAskQuote from SimpleQuote, and use that in
CalibrationHelper (my first choice).
- Subclass CalibrationHelper to add Bid/Ask as SimpleQuotes, etc. In
fact, it would be sufficient for CalibrationHelper to accept a list of
Quotes as well as a single Quote.

Thanks in advance

Patrick Hénaff



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