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Class optionCalc.EuropeanCallOption 

java.lang.Object
   |
   +----optionCalc.AbstractOption
           |
           +----optionCalc.EuropeanCallOption
public class EuropeanCallOption
extends AbstractOption

Constructor Index

o EuropeanCallOption(int, double, double, double, double)
Constructs a EuropeanCallOption object, this function calls the super class constructor in CAbstractOption
o EuropeanCallOption(int, double, double, double, double, double)
Constructs a EuropeanCallOption object, this function calls the super class constructor in CAbstractOption and sets the strike price.

Method Index

o F(double, double)
Determines how the auxillary process evolves over time.
o payoff(double, double, int)
Determines the payoff in terms of the stock price, and strike price.
o setStrike(double)
Sets the strike price

Constructors

o EuropeanCallOption 
 public EuropeanCallOption(int T,
                           double r,
                           double u,
                           double d,
                           double s_0)
Constructs a EuropeanCallOption object, this function calls the super class constructor in CAbstractOption

Parameters:
T - the (int) time Horizon
r - the (double) short rate
u - the (double) up-factor
d - the (double) down-factor
s_0 - the (double) initial stock price
o EuropeanCallOption 
 public EuropeanCallOption(int T,
                           double r,
                           double u,
                           double d,
                           double s_0,
                           double strike)
Constructs a EuropeanCallOption object, this function calls the super class constructor in CAbstractOption and sets the strike price.

Parameters:
T - the (int) time Horizon
r - the (double) short rate
u - the (double) up-factor
d - the (double) down-factor
s_0 - the (double) initial stock price
strike - the (double) strike price

Methods

o setStrike 
 public void setStrike(double strike)
Sets the strike price

o F 
 public double F(double s,
                 double x)
Determines how the auxillary process evolves over time. This method is an implementation of the abstract F method in the base class. For this option, we don't need an aux process, so we'll set it equal to the stock price.

Parameters:
s - the (double) new stock price
x - the (double) old value of the aux process
Overrides:
F in class AbstractOption
o payoff 
 public double payoff(double s,
                      double x,
                      int t)
Determines the payoff in terms of the stock price, and strike price. This method is an implementation of the abstract payoff method in the base class.

Parameters:
s - the (double) stock price
x - the (double) value of the aux process
t - the (int) time value
Overrides:
payoff in class AbstractOption 
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