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Slides
Slides

Fixed income
Fixed income

Notes - CS.Duke
Notes - CS.Duke

... we use xi as the new root each time. If we are unfortunate enough to have this sequence of events happen for each union, then the resulting tree structure will just be an n element linked list (and therefore it is still possible for F IND(x) to take Ω(n) time). A straight forward way to fix this pit ...
Document
Document

... – If the item for which we are searching is less than the item in the middle, we know that the item won’t be in the second half of the list – Once again we examine the “middle” element (which is really the item 25% of the way into the list) – The process continues with each comparison cutting in hal ...
Section 9.5
Section 9.5

... 4. The coefficients increase and then decrease in a symmetric pattern. The coefficients of a binomial expansion are called binomial coefficients. To find them, you can use the Binomial Theorem. ...
Money and Prices
Money and Prices

... The interest rate quoted on a discount bond of maturity date T is calculated as P  (1 100 i ) If you put PB into a bank account that offered and interest rate of it,T for T years, you would have a final balance of 100. This interest rate is the average return you will get on your bond if you hold ...
Data Structures CSCI 262, Spring 2002 Lecture 2 Classes and
Data Structures CSCI 262, Spring 2002 Lecture 2 Classes and

MCF Outline 6
MCF Outline 6

High Yield Bond Fund
High Yield Bond Fund

Chapter_2_Presentation
Chapter_2_Presentation

... Taking into account that the economy can be in a “bad” state or a “good” state during each year. If it is in a bad state, cash flows will be $100 for the year. If it is in the good state, however, cash flows will be $200 for the year. Assume that during each year the bad state and the good state eac ...
Bonds and Long
Bonds and Long

Discrete Barrier and Lookback Options
Discrete Barrier and Lookback Options

... An important issue of pricing barrier options is whether the barrier crossing is monitored in continuous time or in discrete time. Most models assume the continuous time version mainly because this leads to analytical solutions; see, for example, Gatto et al. (1979), Goldman et al. (1979), and Conze ...
(iii) Data Structure with Algorithm
(iii) Data Structure with Algorithm

... 1. Every node has a value and no two nodes have the same value (i.e., all the values are unique). 2. If there exists a left child or left sub tree then its value is less than the value of the root. 3. The value(s) in the right child or right sub tree is larger than the value of the root node. All th ...
Binary Search Trees
Binary Search Trees

... 4) (4) If it is less than the value stored at the root, then search the left subtree 5) (5) If it is greater than the value stored at the root, then search the right subtree 6) (6) Repeat steps 2-6 for the root of the subtree chosen in the previous step 4 or 5 Is this better than searching a linked ...
CSCI 220 Data Structures and Algorithms
CSCI 220 Data Structures and Algorithms

Lecture No. 15
Lecture No. 15

... present, and will seek the left and right subtrees accordingly, if required. In case of int’s we could easily compare them and see which one is greater but what will happen in case of strings. You must remember, every character of a string has an associated ASCII value. We can make a lexicographic o ...
Chapter 4 Linked Stacks and Queues 链式栈和链式队列
Chapter 4 Linked Stacks and Queues 链式栈和链式队列

... void mult_term(Polynomial p, Term t); ...
$doc.title

... P.   One  way  is  to  simply  sort  the  array,  then  repeatedly  insert  the  median  of   the  remaining  data  points.   P.   One  can  simply  use  an  ordered  array  (or  equivalently,  use  a  trivial  hash   function  whic ...
JDEP384hLecture12.pdf
JDEP384hLecture12.pdf

... The Basics Review of Derivative: A nancial contract binding holders to certain nancial rights or obligations, contingent on certain conditions which may involve the price of other securities. ...
Notes
Notes

... Trees Trees are non-linear data structures. Tree nodes contain two or more links. In the case of binary trees each node has two links, which refer to two children. If one of the children is missing the corresponding root reference will be null. The following program instantiates an empty Tree objec ...
of data access
of data access

QRC (Quick Reference Card)
QRC (Quick Reference Card)

class8
class8

... Best offline strategy : no efficient algorithm for computing it known. ...
NBER WORKING PAPER SERIES THE EFFECT OF INFLATION ON THE PRICES
NBER WORKING PAPER SERIES THE EFFECT OF INFLATION ON THE PRICES

... The second section presents a more ...
Foreign Exchange Markets And Forward Exchange
Foreign Exchange Markets And Forward Exchange

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Lattice model (finance)



For other meanings, see lattice model (disambiguation)In finance, a lattice model [1] is a technique applied to the valuation of derivatives, where, because of path dependence in the payoff, 1) a discretized model is required and 2) Monte Carlo methods fail to account for optimal decisions to terminate the derivative by early exercise. For equity options, a typical example would be pricing an American option, where a decision as to option exercise is required at ""all"" times (any time) before and including maturity. A continuous model, on the other hand, such as Black Scholes, would only allow for the valuation of European options, where exercise is on the option's maturity date. For interest rate derivatives lattices are additionally useful in that they address many of the issues encountered with continuous models, such as pull to par.
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