FinancePy

FinancePy API Reference

Finite Difference Psor

financepy.models.finite_difference_psor

Functions

black_scholes_fd_psor

black_scholes_fd_psor(spot_price, volatility, time_to_expiry, strike_price, risk_free_rate, dividend_yield, opt_type, num_time_steps=None, num_samples=2000, num_std=5, theta=0.5, wind=0, digital=False, smooth=False, acc=1e-13, d_omega=5e-05, max_iter=0)
Solve Black-Scholes equation using projected successive over-relaxtion. Parameters: acc: Keep iterating until this accuracy is achieved d_omega: Larger numbers lead to bigger changes in omega with each iteration max_iter: Maximum number of iterations in psor step. Set to 0 to allow any number of iterations.
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