Smile.Implicitation.BlackScholesMoneynessToStrikeSolver

Classes

BlackScholesMoneynessToStrikeSolver(...) Class to compute the strike associated to a given moneyness in a Black-Scholes model.
IMoneynessToStrikeSolver General interface to compute the strike associated to a given moneyness.
SmileRepresentationConverter Class that permits to convert a smile representation from Strike-> Vol(Strike) to Moneyness -> Vol(Moneyness)
class Smile.Implicitation.BlackScholesMoneynessToStrikeSolver.BlackScholesMoneynessToStrikeSolver(vol_interpolation_in_strike: True, underlying_level: float, duration: float)[source]

Class to compute the strike associated to a given moneyness in a Black-Scholes model.

Parameters:

vol_interpolation_in_strike : callable(float)

An interpolation in strike of the volatility smile

underlying_level : float

The market value of the option underlying.

duration : float

The duration of the american option.

Methods

solve((moneyness: float) -> float) Solve for the strike associated to a given moneyness.
solve(moneyness: float) → float[source]

Solve for the strike associated to a given moneyness.

Parameters:

moneyness : float

The delta representation of the option’s strike.

Returns:

strike : float

The absolute strike equivalent to the inputted moneyness