Define an asset base class, C/C++ Programming

Assignment Help:

a) Define an Asset base class that provides the following method:

class Asset
{
public:
     virtual double getValue()=0;
};
 
This will be the base class for both stock and options classes.  
 
b) Create a Stock class that inherits from Asset. This class should return the stock price as the value for getValue().  You should define a method to set the stock value as well.  In the exercises below, use this class instead of passing stock prices as parameters. It may also be natural to have other stock attributes in this class. 
 
c) Define four Asset child classes: 
a.  AmericanCall - a call option with early exercise 
b.  EuropeanCall - a call option with exercise only allowed at option expiration 
c.  AmericanPut - a put option with early exercise 
d.  EuropeanPut - a put option with exercise only allowed at option expiration.
 
It is up to you to decide upon a suitable class inheritance structure.  You will also probably find it useful to create one or more parent classes to encapsulate functionality.

Each option class should (eventually) implement its own getValue() function based on the type of option and whether early exercise is allowed. You will need the binomial tree from Part II to implement getValue() for American style options. You may find it useful to initially make these functions 'dummies' (i.e. ones that return a constant) until the binomial tree is implemented.

d)  Add a BlackScholesValue function to EuropeanCall and EuropeanPut that implements the closed form solution of each.  Note: since we will not be varying the risk-free rate or stock volatility, this method might also be useful for getValue() for these options.

e) Create a method ValueSpots(double lowerSpotPrice, double upperSpotPrice, int numberOfSpots, char Name[]) that, for the European Call and European Put, writes numberOfSpots option values to a file whose name is specified by Name.  The function should start with a stock price of lowerSpotPrice and ending with upperSpotPrice.  The spot prices should be equally spaced.

Each line of the file should have the following format:
 
, Strike, Spot, Sigma, T, r, Price 
 
where is a two character description of the option type.  Use EC for a European Call, EP for a European Put, AC for an American Call and AP for an American Put. You won't calculate the values of American Calls and American Puts until part II, but we use the terminology here. 

For example, assume for a European Put with stock spot price of $81 you calculate the put value to be $21.02. Then the line in your file would be:

EP, 100, 81, 0.4, 1.0, 0.05, 21.02

 Execute the function for both European Puts and Calls with Strike $100, Sigma = 40%, risk-free rate = 5% and T = 1 Year, varying the spots from $75 to $125, thereby generating 51 values.


Related Discussions:- Define an asset base class

Mobile problem, program that decodes sending smuggler''s string

program that decodes sending smuggler''s string

How to implement tr- 069 protocol, Description - The TR-069 CPE WAN Managem...

Description - The TR-069 CPE WAN Management Protocol (CWMP) is a protocol that was created by the Broadband Forum (formally the DSL Forum) which sets out a common method for CPE de

Define passing by reference?, A: Method of passing arguments to a function ...

A: Method of passing arguments to a function that takes parameter of type reference.  for instance: void swap( int & x, int & y ) { int temp = x; x =

Develop custom mql4 code, Develop Custom Mql4 Code/Fxdreema block Projec...

Develop Custom Mql4 Code/Fxdreema block Project Description: I need the subsequent code written in mql4 and integrated as custom block(s) in fxdreema: for each trade: C

Online tutor, Given an char variable last that has been initialized to a lo...

Given an char variable last that has been initialized to a lowercase letter, write a loop that displays all possible combinations of two letters in the range ''a'' through last. Th

String, Byteland county is very famous for luminous jewels. Luminous jewels...

Byteland county is very famous for luminous jewels. Luminous jewels are used in making beautiful necklaces. A necklace consists of various luminous jewels of particular colour. Nec

I want to change c++ code to python extension, I want to change C++ code to...

I want to change C++ code to Python extension Project Description: I have the C++ source code for an executable that takes a path to an image file as the input and prints tex

I want rss feed from emails, Project Description: I am trading binary op...

Project Description: I am trading binary options and need my signals that are sent to me via email to be sent to my followers via an RSS feed I have no idea how rss feeds imp

Data structure, how to convert a general tree into binary tree with example...

how to convert a general tree into binary tree with example

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd