Implement a function or class to solve the Black-Scholed Model Partial Differential Equation. It should be able to price both European and American-style derivatives of arbitrary payoff structure (i.e. the payoff function should be a Callable). Implement full functionality: That is, calculate the price of both European and American options on dividend-paying stocks and be flexible to price other options besides standard calls and puts. Provide documentation: Provide docstrings and example usage for your implementation. It should be easy for someone looking at your code to understand how to call it and what the parameters mean. A short README.md file or example script would be useful.

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
icon
Related questions
Question

Implement a function or class to solve the Black-Scholed Model Partial Differential Equation. It should be able to price both European and American-style derivatives of arbitrary payoff structure (i.e. the payoff function should be a Callable).

Implement full functionality: That is, calculate the price of both European and American options on dividend-paying stocks and be flexible to price other options besides standard calls and puts.

Provide documentation: Provide docstrings and example usage for your implementation. It should be easy for someone looking at your code to understand how to call it and what the parameters mean. A short README.md file or example script would be useful.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Knowledge Booster
Bare Bones Programming Language
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, computer-science and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Database System Concepts
Database System Concepts
Computer Science
ISBN:
9780078022159
Author:
Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:
McGraw-Hill Education
Starting Out with Python (4th Edition)
Starting Out with Python (4th Edition)
Computer Science
ISBN:
9780134444321
Author:
Tony Gaddis
Publisher:
PEARSON
Digital Fundamentals (11th Edition)
Digital Fundamentals (11th Edition)
Computer Science
ISBN:
9780132737968
Author:
Thomas L. Floyd
Publisher:
PEARSON
C How to Program (8th Edition)
C How to Program (8th Edition)
Computer Science
ISBN:
9780133976892
Author:
Paul J. Deitel, Harvey Deitel
Publisher:
PEARSON
Database Systems: Design, Implementation, & Manag…
Database Systems: Design, Implementation, & Manag…
Computer Science
ISBN:
9781337627900
Author:
Carlos Coronel, Steven Morris
Publisher:
Cengage Learning
Programmable Logic Controllers
Programmable Logic Controllers
Computer Science
ISBN:
9780073373843
Author:
Frank D. Petruzella
Publisher:
McGraw-Hill Education