FRAStandardCapFloorlet.java
package org.drip.product.fra;
/*
* -*- mode: java; tab-width: 4; indent-tabs-mode: nil; c-basic-offset: 4 -*-
*/
/*!
* Copyright (C) 2020 Lakshmi Krishnamurthy
* Copyright (C) 2019 Lakshmi Krishnamurthy
* Copyright (C) 2018 Lakshmi Krishnamurthy
* Copyright (C) 2017 Lakshmi Krishnamurthy
* Copyright (C) 2016 Lakshmi Krishnamurthy
* Copyright (C) 2015 Lakshmi Krishnamurthy
* Copyright (C) 2014 Lakshmi Krishnamurthy
*
* This file is part of DROP, an open-source library targeting analytics/risk, transaction cost analytics,
* asset liability management analytics, capital, exposure, and margin analytics, valuation adjustment
* analytics, and portfolio construction analytics within and across fixed income, credit, commodity,
* equity, FX, and structured products. It also includes auxiliary libraries for algorithm support,
* numerical analysis, numerical optimization, spline builder, model validation, statistical learning,
* and computational support.
*
* https://lakshmidrip.github.io/DROP/
*
* DROP is composed of three modules:
*
* - DROP Product Core - https://lakshmidrip.github.io/DROP-Product-Core/
* - DROP Portfolio Core - https://lakshmidrip.github.io/DROP-Portfolio-Core/
* - DROP Computational Core - https://lakshmidrip.github.io/DROP-Computational-Core/
*
* DROP Product Core implements libraries for the following:
* - Fixed Income Analytics
* - Loan Analytics
* - Transaction Cost Analytics
*
* DROP Portfolio Core implements libraries for the following:
* - Asset Allocation Analytics
* - Asset Liability Management Analytics
* - Capital Estimation Analytics
* - Exposure Analytics
* - Margin Analytics
* - XVA Analytics
*
* DROP Computational Core implements libraries for the following:
* - Algorithm Support
* - Computation Support
* - Function Analysis
* - Model Validation
* - Numerical Analysis
* - Numerical Optimizer
* - Spline Builder
* - Statistical Learning
*
* Documentation for DROP is Spread Over:
*
* - Main => https://lakshmidrip.github.io/DROP/
* - Wiki => https://github.com/lakshmiDRIP/DROP/wiki
* - GitHub => https://github.com/lakshmiDRIP/DROP
* - Repo Layout Taxonomy => https://github.com/lakshmiDRIP/DROP/blob/master/Taxonomy.md
* - Javadoc => https://lakshmidrip.github.io/DROP/Javadoc/index.html
* - Technical Specifications => https://github.com/lakshmiDRIP/DROP/tree/master/Docs/Internal
* - Release Versions => https://lakshmidrip.github.io/DROP/version.html
* - Community Credits => https://lakshmidrip.github.io/DROP/credits.html
* - Issues Catalog => https://github.com/lakshmiDRIP/DROP/issues
* - JUnit => https://lakshmidrip.github.io/DROP/junit/index.html
* - Jacoco => https://lakshmidrip.github.io/DROP/jacoco/index.html
*
* Licensed under the Apache License, Version 2.0 (the "License");
* you may not use this file except in compliance with the License.
*
* You may obtain a copy of the License at
* http://www.apache.org/licenses/LICENSE-2.0
*
* Unless required by applicable law or agreed to in writing, software
* distributed under the License is distributed on an "AS IS" BASIS,
* WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
*
* See the License for the specific language governing permissions and
* limitations under the License.
*/
/**
* <i>FRAStandardCapFloorlet</i> implements the Standard FRA Caplet and Floorlet.
*
* <br><br>
* <ul>
* <li><b>Module </b> = <a href = "https://github.com/lakshmiDRIP/DROP/tree/master/ProductCore.md">Product Core Module</a></li>
* <li><b>Library</b> = <a href = "https://github.com/lakshmiDRIP/DROP/tree/master/FixedIncomeAnalyticsLibrary.md">Fixed Income Analytics</a></li>
* <li><b>Project</b> = <a href = "https://github.com/lakshmiDRIP/DROP/tree/master/src/main/java/org/drip/product/README.md">Product Components/Baskets for Credit, FRA, FX, Govvie, Rates, and Option AssetClasses</a></li>
* <li><b>Package</b> = <a href = "https://github.com/lakshmiDRIP/DROP/tree/master/src/main/java/org/drip/product/fra/README.md">Standard/Market FRAs - Caps/Floors</a></li>
* </ul>
* <br><br>
*
* @author Lakshmi Krishnamurthy
*/
public class FRAStandardCapFloorlet extends org.drip.product.option.OptionComponent {
private boolean _bIsCaplet = false;
private org.drip.product.fra.FRAStandardComponent _fra = null;
private org.drip.pricer.option.FokkerPlanckGenerator _fpg = null;
/**
* FRAStandardCapFloorlet constructor
*
* @param strName Name
* @param fra The Underlying FRA Standard Component
* @param strManifestMeasure Measure of the Underlying Component
* @param bIsCaplet Is the FRA Option a Caplet? TRUE - YES
* @param dblStrike Strike of the Underlying Component's Measure
* @param dblNotional Option Notional
* @param ltds Last Trading Date Setting
* @param fpg The Fokker Planck Pricer Instance
* @param csp Cash Settle Parameters
*
* @throws java.lang.Exception Thrown if the Inputs are Invalid
*/
public FRAStandardCapFloorlet (
final java.lang.String strName,
final org.drip.product.fra.FRAStandardComponent fra,
final java.lang.String strManifestMeasure,
final boolean bIsCaplet,
final double dblStrike,
final double dblNotional,
final org.drip.product.params.LastTradingDateSetting ltds,
final org.drip.pricer.option.FokkerPlanckGenerator fpg,
final org.drip.param.valuation.CashSettleParams csp)
throws java.lang.Exception
{
super (strName, fra, strManifestMeasure, dblStrike, dblNotional, ltds, csp);
if (null == (_fpg = fpg))
throw new java.lang.Exception ("FRAStandardCapFloorlet ctr: Invalid Option Pricer");
_fra = fra;
_bIsCaplet = bIsCaplet;
}
/**
* Retrieve the Underlying FRA Instance
*
* @return The FRA Instance
*/
public org.drip.product.fra.FRAStandardComponent fra()
{
return _fra;
}
/**
* Indicate whether this a Caplet/Floorlet
*
* @return TRUE - This is a Caplet
*/
public boolean isCaplet()
{
return _bIsCaplet;
}
/**
* Retrieve the Underlying Pricer Instance
*
* @return The Pricer Instance
*/
public org.drip.pricer.option.FokkerPlanckGenerator pricer()
{
return _fpg;
}
/**
* Generate the Standard FRA Caplet/Floorlet Measures from the Integrated Surface Variance
*
* @param valParams The Valuation Parameters
* @param pricerParams The Pricer Parameters
* @param csqs The Market Parameters
* @param vcp The Valuation Customization Parameters
* @param dblIntegratedSurfaceVariance The Integrated Surface Variance
*
* @return The Standard FRA Caplet/Floorlet Measures
*/
public org.drip.analytics.support.CaseInsensitiveTreeMap<java.lang.Double> valueFromSurfaceVariance (
final org.drip.param.valuation.ValuationParams valParams,
final org.drip.param.pricer.CreditPricerParams pricerParams,
final org.drip.param.market.CurveSurfaceQuoteContainer csqs,
final org.drip.param.valuation.ValuationCustomizationParams vcp,
final double dblIntegratedSurfaceVariance)
{
if (null == valParams || null == csqs || !org.drip.numerical.common.NumberUtil.IsValid
(dblIntegratedSurfaceVariance))
return null;
org.drip.state.discount.MergedDiscountForwardCurve dcFunding = csqs.fundingState
(org.drip.state.identifier.FundingLabel.Standard (_fra.payCurrency()));
if (null == dcFunding) return null;
int iValueDate = valParams.valueDate();
org.drip.product.params.LastTradingDateSetting ltds = lastTradingDateSetting();
try {
if (null != ltds && iValueDate >= ltds.lastTradingDate (_fra.effectiveDate().julian(),
_fra.stream().calendar()))
return null;
} catch (java.lang.Exception e) {
e.printStackTrace();
return null;
}
long lStart = System.nanoTime();
int iExerciseDate = exerciseDate().julian();
org.drip.analytics.support.CaseInsensitiveTreeMap<java.lang.Double> mapFRAOutput = _fra.value
(valParams, pricerParams, csqs, vcp);
java.lang.String strManifestMeasure = manifestMeasure();
if (null == mapFRAOutput || !mapFRAOutput.containsKey (strManifestMeasure)) return null;
double dblFRADV01 = mapFRAOutput.get ("DV01");
double dblATMManifestMeasure = mapFRAOutput.get (strManifestMeasure);
if (!org.drip.numerical.common.NumberUtil.IsValid (dblATMManifestMeasure) ||
!org.drip.numerical.common.NumberUtil.IsValid (dblFRADV01))
return null;
try {
double dblStrike = strike();
double dblNotional = notional();
double dblMoneynessFactor = dblATMManifestMeasure / dblStrike;
double dblManifestMeasurePriceTransformer = java.lang.Double.NaN;
double dblManifestMeasureIntrinsic = _bIsCaplet ? dblATMManifestMeasure - dblStrike : dblStrike -
dblATMManifestMeasure;
if (strManifestMeasure.equalsIgnoreCase ("Price") || strManifestMeasure.equalsIgnoreCase ("PV"))
dblManifestMeasurePriceTransformer = dcFunding.df (iExerciseDate);
else if (strManifestMeasure.equalsIgnoreCase ("ForwardRate") ||
strManifestMeasure.equalsIgnoreCase ("ParForward") || strManifestMeasure.equalsIgnoreCase
("ParForwardRate") || strManifestMeasure.equalsIgnoreCase ("QuantoAdjustedParForward") ||
strManifestMeasure.equalsIgnoreCase ("Rate"))
dblManifestMeasurePriceTransformer = 10000. * dblFRADV01;
if (!org.drip.numerical.common.NumberUtil.IsValid (dblManifestMeasurePriceTransformer)) return null;
org.drip.pricer.option.Greeks optGreek = _fpg.greeks (iValueDate, iExerciseDate, dblStrike,
dcFunding, dblATMManifestMeasure, !_bIsCaplet, true, dblIntegratedSurfaceVariance);
org.drip.analytics.support.CaseInsensitiveTreeMap<java.lang.Double> mapResult = new
org.drip.analytics.support.CaseInsensitiveTreeMap<java.lang.Double>();
double dblForwardIntrinsic = optGreek.expectedPayoff();
double dblForwardATMIntrinsic = optGreek.expectedATMPayoff();
double dblSpotPrice = dblForwardIntrinsic * dblManifestMeasurePriceTransformer;
mapResult.put ("ATMFRA", dblATMManifestMeasure);
mapResult.put ("ATMPrice", dblForwardATMIntrinsic * dblManifestMeasurePriceTransformer);
mapResult.put ("CalcTime", (System.nanoTime() - lStart) * 1.e-09);
mapResult.put ("Charm", optGreek.charm() * dblManifestMeasurePriceTransformer);
mapResult.put ("Color", optGreek.color() * dblManifestMeasurePriceTransformer);
mapResult.put ("Delta", optGreek.delta() * dblManifestMeasurePriceTransformer);
mapResult.put ("EffectiveVolatility", optGreek.effectiveVolatility());
mapResult.put ("ExpectedATMPayoff", optGreek.expectedATMPayoff());
mapResult.put ("ExpectedPayoff", optGreek.expectedPayoff());
mapResult.put ("ForwardATMIntrinsic", dblForwardATMIntrinsic);
mapResult.put ("ForwardIntrinsic", dblForwardIntrinsic);
mapResult.put ("Gamma", optGreek.gamma() * dblManifestMeasurePriceTransformer);
mapResult.put ("IntegratedSurfaceVariance", dblIntegratedSurfaceVariance);
mapResult.put ("ManifestMeasureIntrinsic", dblManifestMeasureIntrinsic);
mapResult.put ("ManifestMeasureIntrinsicValue", dblManifestMeasureIntrinsic *
dblManifestMeasurePriceTransformer);
mapResult.put ("ManifestMeasureTransformer", dblManifestMeasurePriceTransformer);
mapResult.put ("MoneynessFactor", dblMoneynessFactor);
mapResult.put ("Price", dblSpotPrice);
mapResult.put ("Prob1", optGreek.prob1());
mapResult.put ("Prob2", optGreek.prob2());
mapResult.put ("PV", dblSpotPrice * dblNotional);
mapResult.put ("Rho", optGreek.rho() * dblManifestMeasurePriceTransformer);
mapResult.put ("Speed", optGreek.speed() * dblManifestMeasurePriceTransformer);
mapResult.put ("SpotPrice", dblSpotPrice);
mapResult.put ("Theta", optGreek.theta() * dblManifestMeasurePriceTransformer);
mapResult.put ("Ultima", optGreek.ultima() * dblManifestMeasurePriceTransformer);
mapResult.put ("Upfront", dblSpotPrice);
mapResult.put ("Vanna", optGreek.vanna() * dblManifestMeasurePriceTransformer);
mapResult.put ("Vega", optGreek.vega() * dblManifestMeasurePriceTransformer);
mapResult.put ("Veta", optGreek.veta() * dblManifestMeasurePriceTransformer);
mapResult.put ("Vomma", optGreek.vomma() * dblManifestMeasurePriceTransformer);
return mapResult;
} catch (java.lang.Exception e) {
// e.printStackTrace();
}
return null;
}
/**
* Compute the Caplet/Floorlet Price from the Inputs
*
* @param valParams The Valuation Parameters
* @param pricerParams Pricer Parameters
* @param csqs The Market Parameters
* @param vcp The Valuation Customization Parameters
* @param dblVolatility The FRA Volatility
*
* @return The Caplet/Floorlet Price
*
* @throws java.lang.Exception Thrown if the Inputs are Invalid
*/
public double price (
final org.drip.param.valuation.ValuationParams valParams,
final org.drip.param.pricer.CreditPricerParams pricerParams,
final org.drip.param.market.CurveSurfaceQuoteContainer csqs,
final org.drip.param.valuation.ValuationCustomizationParams vcp,
final double dblVolatility)
throws java.lang.Exception
{
if (null == valParams || null == csqs || !org.drip.numerical.common.NumberUtil.IsValid (dblVolatility))
throw new java.lang.Exception ("FRAStandardCapFloorlet::price => Invalid Inputs");
org.drip.state.discount.MergedDiscountForwardCurve dcFunding = csqs.fundingState
(org.drip.state.identifier.FundingLabel.Standard (_fra.payCurrency()));
if (null == dcFunding)
throw new java.lang.Exception ("FRAStandardCapFloorlet::price => Invalid Inputs");
int iExerciseDate = exerciseDate().julian();
org.drip.analytics.support.CaseInsensitiveTreeMap<java.lang.Double> mapFRAOutput = _fra.value
(valParams, pricerParams, csqs, vcp);
java.lang.String strManifestMeasure = manifestMeasure();
if (null == mapFRAOutput || !mapFRAOutput.containsKey (strManifestMeasure))
throw new java.lang.Exception ("FRAStandardCapFloorlet::price => No ATM Metric");
double dblManifestMeasurePriceTransformer = java.lang.Double.NaN;
if (strManifestMeasure.equalsIgnoreCase ("Price") || strManifestMeasure.equalsIgnoreCase ("PV"))
dblManifestMeasurePriceTransformer = dcFunding.df (iExerciseDate);
else if (strManifestMeasure.equalsIgnoreCase ("ForwardRate") ||
strManifestMeasure.equalsIgnoreCase ("ParForward") || strManifestMeasure.equalsIgnoreCase
("ParForwardRate") || strManifestMeasure.equalsIgnoreCase ("QuantoAdjustedParForward") ||
strManifestMeasure.equalsIgnoreCase ("Rate")) {
if (!mapFRAOutput.containsKey ("DV01"))
throw new java.lang.Exception ("FRAStandardCapFloorlet::price => No FRA DV01");
dblManifestMeasurePriceTransformer = 10000. * mapFRAOutput.get ("DV01");
}
if (!org.drip.numerical.common.NumberUtil.IsValid (dblManifestMeasurePriceTransformer))
throw new java.lang.Exception
("FRAStandardCapFloorlet::price => No Manifest Measure Price Transformer");
return dblManifestMeasurePriceTransformer * _fpg.payoff (valParams.valueDate(), iExerciseDate,
strike(), dcFunding, mapFRAOutput.get (strManifestMeasure), !_bIsCaplet, true, dblVolatility,
false);
}
/**
* Imply the Flat Caplet/Floorlet Volatility from the Market Manifest Measure
*
* @param valParams The Valuation Parameters
* @param pricerParams Pricer Parameters
* @param csqs The Market Parameters
* @param vcp The Valuation Customization Parameters
* @param strCalibMeasure The Calibration Measure
* @param dblCalibValue The Calibration Value
*
* @return The Implied Caplet/Floorlet Volatility
*
* @throws java.lang.Exception Thrown if the Inputs are Invalid
*/
public double implyVolatility (
final org.drip.param.valuation.ValuationParams valParams,
final org.drip.param.pricer.CreditPricerParams pricerParams,
final org.drip.param.market.CurveSurfaceQuoteContainer csqs,
final org.drip.param.valuation.ValuationCustomizationParams vcp,
final java.lang.String strCalibMeasure,
final double dblCalibValue)
throws java.lang.Exception
{
if (null == valParams || null == strCalibMeasure || strCalibMeasure.isEmpty() || null == csqs ||
!org.drip.numerical.common.NumberUtil.IsValid (dblCalibValue))
throw new java.lang.Exception ("FRAStandardCapFloorlet::implyVolatility => Invalid Inputs");
final double dblStrike = strike();
final int iValueDate = valParams.valueDate();
final int iExerciseDate = exerciseDate().julian();
final org.drip.state.discount.MergedDiscountForwardCurve dcFunding = csqs.fundingState
(org.drip.state.identifier.FundingLabel.Standard (_fra.payCurrency()));
org.drip.analytics.support.CaseInsensitiveTreeMap<java.lang.Double> mapFRAOutput = _fra.value
(valParams, pricerParams, csqs, vcp);
java.lang.String strManifestMeasure = manifestMeasure();
if (null == mapFRAOutput || !mapFRAOutput.containsKey (strManifestMeasure))
throw new java.lang.Exception ("FRAStandardCapFloorlet::implyVolatility => No ATM Metric");
final double dblATMManifestMeasure = mapFRAOutput.get (strManifestMeasure);
double dblManifestMeasurePriceTransformer = java.lang.Double.NaN;
if (strManifestMeasure.equalsIgnoreCase ("Price") || strManifestMeasure.equalsIgnoreCase ("PV"))
dblManifestMeasurePriceTransformer = dcFunding.df (iExerciseDate);
else if (strManifestMeasure.equalsIgnoreCase ("ForwardRate") ||
strManifestMeasure.equalsIgnoreCase ("ParForward") || strManifestMeasure.equalsIgnoreCase
("ParForwardRate") || strManifestMeasure.equalsIgnoreCase ("QuantoAdjustedParForward") ||
strManifestMeasure.equalsIgnoreCase ("Rate")) {
if (!mapFRAOutput.containsKey ("DV01"))
throw new java.lang.Exception ("FRAStandardCapFloorlet::implyVolatility => No DV01");
dblManifestMeasurePriceTransformer = 10000. * mapFRAOutput.get ("DV01");
}
final double dblManifestMeasurePriceTransformerCalib = dblManifestMeasurePriceTransformer;
if (!org.drip.numerical.common.NumberUtil.IsValid (dblManifestMeasurePriceTransformer))
throw new java.lang.Exception ("FRAStandardCapFloorlet::implyVolatility => No Transformer");
org.drip.function.definition.R1ToR1 funcVolPricer = new org.drip.function.definition.R1ToR1 (null) {
@Override public double evaluate (
final double dblVolatility)
throws java.lang.Exception
{
if ("Price".equals (strCalibMeasure))
return dblManifestMeasurePriceTransformerCalib * _fpg.payoff (iValueDate, iExerciseDate,
dblStrike, dcFunding, dblATMManifestMeasure, !_bIsCaplet, true, dblVolatility,
false);
if ("ATMPrice".equals (strCalibMeasure))
return dblManifestMeasurePriceTransformerCalib * _fpg.payoff (iValueDate, iExerciseDate,
dblStrike, dcFunding, dblStrike, !_bIsCaplet, true, dblVolatility, false);
java.util.Map<java.lang.String, java.lang.Double> mapOutput = valueFromSurfaceVariance
(valParams, pricerParams, csqs, vcp, dblVolatility * dblVolatility * (iExerciseDate -
iValueDate) / 365.25);
if (null == mapOutput || !mapOutput.containsKey (strCalibMeasure))
throw new java.lang.Exception
("FRAStandardCapFloorlet::implyVolatility => Cannot generate Calibration Measure");
return mapOutput.get (strCalibMeasure);
}
};
org.drip.function.r1tor1solver.FixedPointFinderOutput fpfo = (new
org.drip.function.r1tor1solver.FixedPointFinderBrent (dblCalibValue, funcVolPricer,
false)).findRoot();
if (null == fpfo || !fpfo.containsRoot())
throw new java.lang.Exception
("FRAStandardCapFloorlet::implyVolatility => Cannot calibrate the Vol");
return fpfo.getRoot();
}
@Override public org.drip.analytics.support.CaseInsensitiveTreeMap<java.lang.Double> value (
final org.drip.param.valuation.ValuationParams valParams,
final org.drip.param.pricer.CreditPricerParams pricerParams,
final org.drip.param.market.CurveSurfaceQuoteContainer csqs,
final org.drip.param.valuation.ValuationCustomizationParams vcp)
{
if (null == valParams || null == csqs) return null;
try {
return valueFromSurfaceVariance (valParams, pricerParams, csqs, vcp,
org.drip.analytics.support.OptionHelper.IntegratedSurfaceVariance (csqs.forwardVolatility
(_fra.forwardLabel().get ("DERIVED")), valParams.valueDate(), exerciseDate().julian()));
} catch (java.lang.Exception e) {
e.printStackTrace();
}
return null;
}
@Override public java.util.Set<java.lang.String> measureNames()
{
java.util.Set<java.lang.String> setstrMeasureNames = new java.util.TreeSet<java.lang.String>();
setstrMeasureNames.add ("ATMFRA");
setstrMeasureNames.add ("ATMPrice");
setstrMeasureNames.add ("CalcTime");
setstrMeasureNames.add ("Charm");
setstrMeasureNames.add ("Color");
setstrMeasureNames.add ("Delta");
setstrMeasureNames.add ("EffectiveVolatility");
setstrMeasureNames.add ("ExpectedATMPayoff");
setstrMeasureNames.add ("ExpectedPayoff");
setstrMeasureNames.add ("ForwardATMIntrinsic");
setstrMeasureNames.add ("ForwardIntrinsic");
setstrMeasureNames.add ("Gamma");
setstrMeasureNames.add ("IntegratedSurfaceVariance");
setstrMeasureNames.add ("ManifestMeasureIntrinsic");
setstrMeasureNames.add ("ManifestMeasureIntrinsicValue");
setstrMeasureNames.add ("MoneynessFactor");
setstrMeasureNames.add ("Price");
setstrMeasureNames.add ("Prob1");
setstrMeasureNames.add ("Prob2");
setstrMeasureNames.add ("PV");
setstrMeasureNames.add ("Rho");
setstrMeasureNames.add ("Speed");
setstrMeasureNames.add ("SpotPrice");
setstrMeasureNames.add ("Theta");
setstrMeasureNames.add ("Ultima");
setstrMeasureNames.add ("Upfront");
setstrMeasureNames.add ("Vanna");
setstrMeasureNames.add ("Vega");
setstrMeasureNames.add ("Veta");
setstrMeasureNames.add ("Vomma");
return setstrMeasureNames;
}
@Override public double pv (
final org.drip.param.valuation.ValuationParams valParams,
final org.drip.param.pricer.CreditPricerParams pricerParams,
final org.drip.param.market.CurveSurfaceQuoteContainer csqc,
final org.drip.param.valuation.ValuationCustomizationParams vcp)
throws java.lang.Exception
{
if (null == csqc) throw new java.lang.Exception ("FRAStandardCapFloorlet::pv => Invalid Inputs");
org.drip.state.volatility.VolatilityCurve vc = csqc.forwardVolatility (_fra.forwardLabel().get
("DERIVED"));
if (null == vc) throw new java.lang.Exception ("FRAStandardCapFloorlet::pv => Invalid Inputs");
return price (valParams, pricerParams, csqc, vcp, vc.impliedVol (exerciseDate().julian()));
}
@Override public org.drip.state.estimator.PredictorResponseWeightConstraint volatilityPRWC (
final org.drip.param.valuation.ValuationParams valParams,
final org.drip.param.pricer.CreditPricerParams pricerParams,
final org.drip.param.market.CurveSurfaceQuoteContainer csqs,
final org.drip.param.valuation.ValuationCustomizationParams vcp,
final org.drip.product.calib.ProductQuoteSet pqs)
{
if (null == pqs || null == valParams || !(pqs instanceof
org.drip.product.calib.VolatilityProductQuoteSet))
return null;
double dblEndDate = maturityDate().julian();
if (valParams.valueDate() > dblEndDate) return null;
double dblOptionPV = 0.;
org.drip.product.calib.VolatilityProductQuoteSet vpqs =
(org.drip.product.calib.VolatilityProductQuoteSet) pqs;
if (!vpqs.containsOptionPV()) return null;
try {
dblOptionPV = vpqs.optionPV();
} catch (java.lang.Exception e) {
e.printStackTrace();
return null;
}
org.drip.state.estimator.PredictorResponseWeightConstraint prwc = _fra.stream().volatilityPRWC
(valParams, pricerParams, csqs, vcp, pqs);
if (null == prwc) return null;
if (!prwc.addPredictorResponseWeight (dblEndDate, 1.)) return null;
if (!prwc.addDResponseWeightDManifestMeasure ("OptionPV", dblEndDate, 1.)) return null;
return !prwc.updateValue (dblOptionPV) || !prwc.updateDValueDManifestMeasure ("OptionPV", 1.) ? null
: prwc;
}
}