com.opengamma.analytics.financial.interestrate.payments.derivative.CapFloorCMS.java Source code

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/**
 * Copyright (C) 2011 - present by OpenGamma Inc. and the OpenGamma group of companies
 *
 * Please see distribution for license.
 */
package com.opengamma.analytics.financial.interestrate.payments.derivative;

import org.apache.commons.lang.ObjectUtils;

import com.opengamma.analytics.financial.instrument.payment.CapFloor;
import com.opengamma.analytics.financial.interestrate.InstrumentDerivativeVisitor;
import com.opengamma.analytics.financial.interestrate.swap.derivative.SwapFixedCoupon;
import com.opengamma.util.ArgumentChecker;
import com.opengamma.util.money.Currency;

/**
 * Class describing a caplet/floorlet on CMS rate.
 */
public class CapFloorCMS extends CouponFloating implements CapFloor {

    /**
     * Swap underlying the CMS definition. The rate and notional are not used. The swap should be of vanilla type.
     */
    private final SwapFixedCoupon<? extends Payment> _underlyingSwap;
    /**
     * The time (in years) to underlying swap settlement.
     */
    private final double _settlementTime;
    /**
     * The cap/floor strike.
     */
    private final double _strike;
    /**
     * The cap (true) / floor (false) flag.
     */
    private final boolean _isCap;

    /**
     * Constructor from floating coupon details and underlying swap.
     * @param currency The payment currency.
     * @param paymentTime Time (in years) up to the payment.
     * @param paymentYearFraction The year fraction (or accrual factor) for the coupon payment.
     * @param fundingCurveName The funding curve name, not null
     * @param notional Coupon notional.
     * @param fixingTime Time (in years) up to fixing.
     * @param underlyingSwap A swap describing the CMS underlying. The rate and notional are not used. The swap should be of vanilla type.
     * @param settlementTime The time (in years) to underlying swap settlement.
     * @param strike The strike.
     * @param isCap The cap (true) /floor (false) flag.
     * @deprecated Use the constructor that does not take a yield curve name
     */
    @Deprecated
    public CapFloorCMS(final Currency currency, final double paymentTime, final String fundingCurveName,
            final double paymentYearFraction, final double notional, final double fixingTime,
            final SwapFixedCoupon<? extends Payment> underlyingSwap, final double settlementTime,
            final double strike, final boolean isCap) {
        super(currency, paymentTime, fundingCurveName, paymentYearFraction, notional, fixingTime);
        ArgumentChecker.notNull(underlyingSwap, "underlying swap");
        ArgumentChecker.isTrue(underlyingSwap.isIborOrFixed(), "underlying swap not of vanilla type");
        _underlyingSwap = underlyingSwap;
        _settlementTime = settlementTime;
        _strike = strike;
        _isCap = isCap;
    }

    /**
     * Constructor from floating coupon details and underlying swap.
     * @param currency The payment currency.
     * @param paymentTime Time (in years) up to the payment.
     * @param paymentYearFraction The year fraction (or accrual factor) for the coupon payment.
     * @param notional Coupon notional.
     * @param fixingTime Time (in years) up to fixing.
     * @param underlyingSwap A swap describing the CMS underlying. The rate and notional are not used. The swap should be of vanilla type.
     * @param settlementTime The time (in years) to underlying swap settlement.
     * @param strike The strike.
     * @param isCap The cap (true) /floor (false) flag.
     */
    public CapFloorCMS(final Currency currency, final double paymentTime, final double paymentYearFraction,
            final double notional, final double fixingTime, final SwapFixedCoupon<? extends Payment> underlyingSwap,
            final double settlementTime, final double strike, final boolean isCap) {
        super(currency, paymentTime, paymentYearFraction, notional, fixingTime);
        ArgumentChecker.notNull(underlyingSwap, "underlying swap");
        ArgumentChecker.isTrue(underlyingSwap.isIborOrFixed(), "underlying swap not of vanilla type");
        _underlyingSwap = underlyingSwap;
        _settlementTime = settlementTime;
        _strike = strike;
        _isCap = isCap;
    }

    /**
     * Cap/floor CMS builder from a CMS coupon, the strike and the cap/floor flag.
     * @param coupon The CMS coupon.
     * @param strike The strike.
     * @param isCap The cap (true) /floor (false) flag.
     * @return The CMS cap/floor.
     */
    @SuppressWarnings("deprecation")
    public static CapFloorCMS from(final CouponCMS coupon, final double strike, final boolean isCap) {
        try {
            return new CapFloorCMS(coupon.getCurrency(), coupon.getPaymentTime(),
                    coupon.getUnderlyingSwap().getFixedLeg().getNthPayment(0).getFundingCurveName(),
                    coupon.getPaymentYearFraction(), coupon.getNotional(), coupon.getFixingTime(),
                    coupon.getUnderlyingSwap(), coupon.getSettlementTime(), strike, isCap);
        } catch (final IllegalStateException e) {
            return new CapFloorCMS(coupon.getCurrency(), coupon.getPaymentTime(), coupon.getPaymentYearFraction(),
                    coupon.getNotional(), coupon.getFixingTime(), coupon.getUnderlyingSwap(),
                    coupon.getSettlementTime(), strike, isCap);
        }
    }

    /**
     * Gets the underlying swap.
     * @return The underlying swap.
     */
    public SwapFixedCoupon<? extends Payment> getUnderlyingSwap() {
        return _underlyingSwap;
    }

    /**
     * Gets the underlying swap settlement time.
     * @return The swap settlement time.
     */
    public double getSettlementTime() {
        return _settlementTime;
    }

    @Override
    public double getStrike() {
        return _strike;
    }

    @Override
    public boolean isCap() {
        return _isCap;
    }

    @Override
    public double payOff(final double fixing) {
        final double omega = (_isCap) ? 1.0 : -1.0;
        return Math.max(omega * (fixing - _strike), 0);
    }

    @Override
    @SuppressWarnings("deprecation")
    public Coupon withNotional(final double notional) {
        try {
            return new CapFloorCMS(getCurrency(), getPaymentTime(), getFundingCurveName(), getPaymentYearFraction(),
                    notional, getFixingTime(), _underlyingSwap, _settlementTime, _strike, _isCap);
        } catch (final IllegalStateException e) {
            return new CapFloorCMS(getCurrency(), getPaymentTime(), getPaymentYearFraction(), notional,
                    getFixingTime(), _underlyingSwap, _settlementTime, _strike, _isCap);
        }
    }

    @Override
    public int hashCode() {
        final int prime = 31;
        int result = super.hashCode();
        result = prime * result + (_isCap ? 1231 : 1237);
        long temp;
        temp = Double.doubleToLongBits(_settlementTime);
        result = prime * result + (int) (temp ^ (temp >>> 32));
        temp = Double.doubleToLongBits(_strike);
        result = prime * result + (int) (temp ^ (temp >>> 32));
        result = prime * result + _underlyingSwap.hashCode();
        return result;
    }

    @Override
    public boolean equals(final Object obj) {
        if (this == obj) {
            return true;
        }
        if (!super.equals(obj)) {
            return false;
        }
        if (getClass() != obj.getClass()) {
            return false;
        }
        final CapFloorCMS other = (CapFloorCMS) obj;
        if (_isCap != other._isCap) {
            return false;
        }
        if (Double.doubleToLongBits(_settlementTime) != Double.doubleToLongBits(other._settlementTime)) {
            return false;
        }
        if (Double.doubleToLongBits(_strike) != Double.doubleToLongBits(other._strike)) {
            return false;
        }
        if (!ObjectUtils.equals(_underlyingSwap, other._underlyingSwap)) {
            return false;
        }
        return true;
    }

    @Override
    public <S, T> T accept(final InstrumentDerivativeVisitor<S, T> visitor, final S data) {
        return visitor.visitCapFloorCMS(this, data);
    }

    @Override
    public <T> T accept(final InstrumentDerivativeVisitor<?, T> visitor) {
        return visitor.visitCapFloorCMS(this);
    }

}