/* nag_heston_term (s30ncc) Example Program.
*
* NAGPRODCODE Version.
*
* Copyright 2016 Numerical Algorithms Group.
*
* Mark 26, 2016.
*/
#include <nag.h>
#include <nag_stdlib.h>
#include <nags.h>
#include <nagf16.h>
int main(void)
{
/* Scalars */
Integer exit_status = 0;
double disc, fwd, t, var0;
Integer i, j, m, numts;
/* Arrays */
double *alpha = 0, *corr = 0, *lambda = 0, *p = 0, *sigmat = 0,
*ts = 0, *x = 0;
char option_str[8 + 1];
/* Nag Types */
Nag_CallPut option;
NagError fail;
printf("nag_heston_term (s30ncc) Example Program Results\n");
/* Initialize fail */
INIT_FAIL(fail);
scanf("%*[^\n] ");
/* Skip heading in data file */
scanf("%8s%*[^\n]", option_str);
/* nag_enum_name_to_value (x04nac).
* Converts NAG enum member name to value
*/
option = (Nag_CallPut) nag_enum_name_to_value(option_str);
scanf("%" NAG_IFMT " %" NAG_IFMT "%*[^\n] ", &m, &numts);
if (!(p = NAG_ALLOC(m, double)) ||
!(ts = NAG_ALLOC(numts, double)) ||
!(x = NAG_ALLOC(m, double)) ||
!(alpha = NAG_ALLOC(numts, double)) ||
!(corr = NAG_ALLOC(numts, double)) ||
!(lambda = NAG_ALLOC(numts, double)) ||
!(sigmat = NAG_ALLOC(numts, double))
)
{
printf("Allocation failure\n");
exit_status = -1;
goto END;
}
scanf("%lf %lf %lf%*[^\n] ", &fwd, &disc, &var0);
for (j = 0; j < m; j++) {
scanf("%lf", &x[j]);
}
scanf("%*[^\n] ");
for (j = 0; j < numts; j++) {
scanf("%lf", &ts[j]);
}
scanf("%*[^\n] ");
for (j = 0; j < numts; j++) {
scanf("%lf", &alpha[j]);
}
scanf("%*[^\n] ");
for (j = 0; j < numts; j++) {
scanf("%lf", &corr[j]);
}
scanf("%*[^\n] ");
for (j = 0; j < numts; j++) {
scanf("%lf", &lambda[j]);
}
scanf("%*[^\n] ");
for (j = 0; j < numts; j++) {
scanf("%lf", &sigmat[j]);
}
scanf("%*[^\n] ");
/* nag_dsum (f16elc).
* Sum elements of a vector of doubles
*/
t = nag_dsum(numts, ts, 1, &fail);
/* nag_heston_term (s30nc).
* Heston's Stochastic volatility Model with Term Structure.
*/
nag_heston_term(option, m, numts, x, fwd, disc, ts, t, alpha, lambda, corr,
sigmat, var0, p, &fail);
if (fail.code != NE_NOERROR) {
printf("Error from nag_heston_term (s30ncc).\n%s\n", fail.message);
exit_status = 1;
goto END;
}
printf("\nHeston's Stochastic volatility Model with Term Structure\n");
switch (option) {
case Nag_Call:
printf("European Call :\n");
break;
case Nag_Put:
printf("European Put :\n");
}
printf(" Forward = %9.4f\n", fwd);
printf(" Discount Factor = %9.4f\n", disc);
printf(" Variance = %9.4f\n", var0);
printf("\n ts alpha lambda corr sigmat\n");
for (i = 0; i < numts; i++) {
printf("%9.4f %9.4f %9.4f %9.4f %9.4f\n", ts[i], alpha[i], lambda[i],
corr[i], sigmat[i]);
}
printf("\n Strike Expiry Option Price\n");
for (i = 0; i < m; i++)
printf("%9.4f %9.4f %12.4f\n", x[i], t, p[i]);
END:
NAG_FREE(alpha);
NAG_FREE(corr);
NAG_FREE(lambda);
NAG_FREE(p);
NAG_FREE(sigmat);
NAG_FREE(ts);
NAG_FREE(x);
return exit_status;
}