FinancePy

FinancePy API Reference

Ibor Cap Vol Curve

financepy.market.volatility.ibor_cap_vol_curve

Classes

IborCapVolCurve

IborCapVolCurve(curve_dt: financepy.utils.date.Date, cap_maturity_dts: List[financepy.utils.date.Date], accrual_dc_type: financepy.utils.day_count.DayCountTypes, cap_sigmas: numpy.ndarray) -> None
Class to manage a term structure of cap (flat) volatilities and to do the conversion to caplet (spot) volatilities. This does not manage a strike dependency, only a term structure. The cap and caplet volatilies are keyed off the cap and caplet maturity dates. However this volatility only applies to the evolution of the Ibor rate out to the caplet start dates. Note also that this class also handles floor vols.

Methods

generate_caplet_vols

generate_caplet_vols(self) -> None
Bootstrap caplet volatilities from cap volatilities using similar notation to Hull's book (page 32.11). The first volatility in the vector of caplet vols is zero.

caplet_vol

caplet_vol(self, dt: Any | float) -> float
Return the forward rate caplet/floorlet volatility for a specific forward caplet expiry date. The period of the volatility is the the intercaplet spacing period used when creating the class object. The volatility interpolation is piecewise flat.

cap_vol

cap_vol(self, dt: Any | float) -> float
Return the cap flat volatility for a specific cap maturity date for the last caplet/floorlet in the cap/floor. The volatility interpolation is piecewise flat.
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