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Market-model evolution description

This class stores: -# evolutionTimes = the times at which the rates need to be known, -# rateTimes = the times defining the rates that are to be evolved, -# relevanceRates = which rates need to be known at each time.

This class is really just a tuple of evolution and rate times;

  • there will be n+1 rate times expressing payment and reset times of forward rates.
  • there will be any number of evolution times.
  • we also store which part of the rates are relevant for pricing via relevance rates. The important part for the i-th step will then range from relevanceRates[i].first to relevanceRates[i].second. Default values for relevance rates will be 0 and n.
  • example for n = 5:
      |-----|-----|-----|-----|-----|      (size = 6)
      t0    t1    t2    t3    t4    t5     rateTimes
      f0    f1    f2    f3    f4           forwardRates
      d0    d1    d2    d3    d4    d5     discountBonds
      d0/d0 d1/d0 d2/d0 d3/d0 d4/d0 d5/d0  discountRatios
      sr0   sr1   sr2   sr3   sr4          coterminalSwaps

Hierarchy

  • EvolutionDescription

Index

Constructors

constructor

  • Parameters

    • rateTimes: Time[]
    • Default value evolutionTimes: Time[] = []
    • Default value relevanceRates: Array<[Size, Size]> = null

    Returns EvolutionDescription

Properties

Private _evolutionTimes

_evolutionTimes: Time[]

Private _firstAliveRate

_firstAliveRate: Size[]

Private _numberOfRates

_numberOfRates: Size

Private _rateTaus

_rateTaus: Time[]

Private _rateTimes

_rateTimes: Time[]

Private _relevanceRates

_relevanceRates: Array<[Size, Size]>

Methods

evolutionTimes

  • evolutionTimes(): Time[]
  • Returns Time[]

firstAliveRate

  • firstAliveRate(): Size[]
  • Returns Size[]

numberOfRates

  • numberOfRates(): Size
  • Returns Size

numberOfSteps

  • numberOfSteps(): Size
  • Returns Size

rateTaus

  • rateTaus(): Time[]
  • Returns Time[]

rateTimes

  • rateTimes(): Time[]
  • Returns Time[]

relevanceRates

  • Returns Array<[Size, Size]>