Techniques Package#
The techniques
package provides the various numerical and analytical methods used to price options and calculate their sensitivities (Greeks).
Each technique is a concrete implementation of the BaseTechnique
class and is designed to work with one or more financial models from the models
package.
- Analytical Methods:
ClosedFormTechnique
for models with exact solutions. - Transform Methods:
FFTTechnique
andIntegrationTechnique
for models with a known characteristic function. - Tree-Based Methods:
CRRTechnique
,LeisenReimerTechnique
, andTOPMTechnique
for lattice-based pricing. - Simulation Methods:
MonteCarloTechnique
for path-based simulation. - Numerical PDE Solvers:
PDETechnique
for solving the pricing partial differential equation.
For developers, the foundational components are defined in the Base Technique section, and select numerical implementations are in the Kernels section.