FinancePy

FinancePy API Reference

Equity Float Lookback Option

financepy.products.equity.equity_float_lookback_option

Classes

EquityFloatLookbackOption

EquityFloatLookbackOption(expiry_dt: financepy.utils.date.Date, opt_type: financepy.utils.global_types.OptionTypes)
Inherits from: EquityOption
This is an equity option in which the strike of the option is not fixed but is set at expiry to equal the minimum stock price in the case of a call or the maximum stock price in the case of a put. In other words the buyer of the call gets to buy the asset at the lowest price over the period before expiry while the buyer of the put gets to sell the asset at the highest price before expiry.

Methods

value

value(self, value_dt: financepy.utils.date.Date, stock_price: float, discount_curve: financepy.market.curves.discount_curve.DiscountCurve, dividend_curve: financepy.market.curves.discount_curve.DiscountCurve, model, stock_min_max: float)
Valuation of the Floating Lookback option using Black-Scholes using the formulae derived by Goldman, Sosin and Gatto (1979).

value_mc

value_mc(self, value_dt: financepy.utils.date.Date, stock_price: float, discount_curve: financepy.market.curves.discount_curve.DiscountCurve, dividend_curve: financepy.market.curves.discount_curve.DiscountCurve, model, stock_min_max: float, num_paths: int = 10000, num_steps_per_year: int = 252, seed: int = 4242)
Monte Carlo valuation of a floating strike lookback option using a Black-Scholes model that assumes the stock follows a GBM process.
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