QuantConnect / QuantConnect/Lean

Bachelier option pricing model

Open
#6,686 0 comments 4 reactions 0 assignees View on GitHub

Nobody has claimed this yet.

feature
Dominant language
C#
Stars
21.7k
Forks
5.3k
Avg merge
2d 22h
Merged PRs (30d)
34

Description

Expected Behavior

We have the Bachelier option pricing model, the option pricing model that IB uses.

@AlexCatarino: A member has reported that CrankNicolsonFD matches Interactive Brokers' data better than BjerksundStensland

Actual Behavior

We don't have the Bachelier option pricing model.

Potential Solution

Add the Bachelier option pricing model.

Checklist
  • I have completely filled out this template
  • I have confirmed that this issue exists on the current master branch
  • I have confirmed that this is not a duplicate issue by searching issues
  • I have provided detailed steps to reproduce the issue

Contributor guide

Open the contributing guide

First steps

  1. Read the whole issue, then the project's contributing guide.
  2. Comment on the issue to say you are picking it up — it saves two people doing the same work.
  3. Fork the repository and make your change on a branch.
  4. Open a pull request that references the issue number.

Research direction

Start by locating the existing CrankNicolsonFD and BjerksundStensland option-pricing implementations and reviewing how pricing models are exposed. Compare the proposed Bachelier model's expected behavior with the Interactive Brokers reference described in the issue. Done means the model is available and its pricing behavior is covered by suitable validation.

Written by the indexing model from the issue text.

Assessment

Tech stack
csharp
Domain
fintech-quant
Issue type
Feature
Difficulty
5/5
Estimated time
Over a week
Activity status
Stale
Clarity
Mostly clear
Newbie friendliness
32/100

Get new issues in your inbox

A short digest of beginner-friendly GitHub issues.