Subject: computational financing 9.2 Recapitulation Consider the following C++ c
ID: 3714950 • Letter: S
Question
Subject: computational financing
9.2 Recapitulation Consider the following C++ code, to calculate the fair values of: (i) American put, (ii) European put, (iii) American call, iv) European call . There are totally 8000 function calls and the memory allocation is the same for them all . Complete the code below and run it. Show me your completed code double S-0; double K 100 , 0 ; doubler-0.05 double q = 0.01; double sigma - 0.5; double T-1.0 double to 0.0 double FV-An-put 0; double FV_Eur_put - 0; double FV_Am_call- 0; double FV-Eur-call = 0 int n = 100; double dS - 0.1; int imax = 2000; for (int i = 1; íExplanation / Answer
Actually I need you to specify what code to implement in binomial_simple function
#include<iostream.h>
#include<conio.h>
#include<fstream.h>
#include<iomanip.h>
double binomial_simple(double St,double Kt,double rt,double qt,double sigmat,double Tt,double t0t,boolean false,boolean false,int nt,double FVt)
{
double ans;
return ans;
}
void main()
{
ofstream outfile;
outfile.open("cheggQue.txt");
double S=0;
double K=100.0;
double r = 0.05;
double q = 0.01;
double sigma = 0.5;
double T = 0.1;
double t0 = 0.0;
double FV_Am_put = 0;
double FV_Eur_put = 0;
double FV_Am_call = 0;
double FV_Eur_call = 0;
int n = 100;
double dS = 0.1;
int imax = 2000;
boolean b1=true;
boolean b2=false;
for(int i=1;i<=imax;++i)
{
S = i*dS;
binomial_simple(S,K,r,q,sigma,T,t0,b2,b1,n,FV_Am_put);
binomial_simple(S,K,r,q,sigma,T,t0,b2,b2,n,FV_Eur_put);
binomial_simple(S,K,r,q,sigma,T,t0,b1,b1,n,FV_Am_call);
binomial_simple(S,K,r,q,sigma,T,t0,b1,b1,n,FV_Eur_call);
outfile<<setw(16)<<S<<" ";
outfile<<setw(16)<<FV_Am_put<<" ";
outfile<<setw(16)<<FV_Eur_put<<" ";
outfile<<setw(16)<<FV_Am_call<<" ";
outfile<<setw(16)<<FV_Eur_call<<" ";
}
getch();
}