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Class LongstaffSchwartzPathPricer<PathType, ValueType>

Longstaff-Schwarz path pricer for early exercise options

References:

Francis Longstaff, Eduardo Schwartz, 2001. Valuing American Options by Simulation: A Simple Least-Squares Approach, The Review of Financial Studies, Volume 14, No. 1, 113-147

test the correctness of the returned value is tested by reproducing results available in web/literature

Type parameters

  • PathType

  • ValueType

Hierarchy

  • PathPricer<PathType>
    • LongstaffSchwartzPathPricer

Implements

Index

Constructors

constructor

Properties

Protected _calibrationPhase

_calibrationPhase: boolean

Protected _coeff

_coeff: Real[][]

Protected _dF

Protected _exerciseProbability

_exerciseProbability: IncrementalStatistics = new IncrementalStatistics()

Protected _len

_len: Size

Protected _pathPricer

_pathPricer: EarlyExercisePathPricer<PathType>

Protected _paths

_paths: PathType[] = []

Protected _v

Methods

calibrate

  • calibrate(): void
  • Returns void

exerciseProbability

  • exerciseProbability(): Real
  • Returns Real

f

  • f(path: PathType): Real
  • Parameters

    • path: PathType

    Returns Real

Protected post_processing

  • Parameters

    Returns void