com.opengamma.financial.analytics.model.equity.variance.EquityForwardFromSpotAndYieldCurveFunction.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.financial.analytics.model.equity.variance;

import java.util.Collections;
import java.util.Set;

import org.apache.commons.lang.Validate;

import com.google.common.collect.Sets;
import com.opengamma.OpenGammaRuntimeException;
import com.opengamma.analytics.financial.model.interestrate.curve.YieldAndDiscountCurve;
import com.opengamma.analytics.util.time.TimeCalculator;
import com.opengamma.core.value.MarketDataRequirementNames;
import com.opengamma.engine.ComputationTarget;
import com.opengamma.engine.ComputationTargetType;
import com.opengamma.engine.function.AbstractFunction;
import com.opengamma.engine.function.FunctionCompilationContext;
import com.opengamma.engine.function.FunctionExecutionContext;
import com.opengamma.engine.function.FunctionInputs;
import com.opengamma.engine.value.ComputedValue;
import com.opengamma.engine.value.ValueProperties;
import com.opengamma.engine.value.ValuePropertyNames;
import com.opengamma.engine.value.ValueRequirement;
import com.opengamma.engine.value.ValueRequirementNames;
import com.opengamma.engine.value.ValueSpecification;
import com.opengamma.financial.security.equity.EquityVarianceSwapSecurity;
import com.opengamma.id.ExternalId;
import com.opengamma.id.UniqueId;

/**
 * 
 */
public class EquityForwardFromSpotAndYieldCurveFunction extends AbstractFunction.NonCompiledInvoker {
    /** String describing the method used to calculate the forward value of an equity spot rate */
    public static final String FORWARD_CALCULATION_METHOD = "ForwardCalculationMethod";
    /** String describing the calculation method used in this function */
    public static final String FORWARD_FROM_SPOT_AND_YIELD_CURVE = "ForwardFromSpotAndYieldCurve";
    private final String _curveDefinitionName;

    public EquityForwardFromSpotAndYieldCurveFunction(String curveDefinitionName) {
        Validate.notNull(curveDefinitionName);
        _curveDefinitionName = curveDefinitionName;
    }

    @Override
    public Set<ComputedValue> execute(FunctionExecutionContext executionContext, FunctionInputs inputs,
            ComputationTarget target, Set<ValueRequirement> desiredValues) {

        // 1. Get the expiry _time_ from the trade
        EquityVarianceSwapSecurity security = (EquityVarianceSwapSecurity) target.getSecurity();
        double expiry = TimeCalculator.getTimeBetween(executionContext.getValuationClock().zonedDateTime(),
                security.getLastObservationDate());

        // ExternalId id = security.getSpotUnderlyingIdentifier();

        // 2. Get the discount curve and spot value
        Object discountObject = inputs.getValue(getDiscountRequirement(security));
        if (discountObject == null) {
            throw new OpenGammaRuntimeException("Could not get Discount Curve");
        }
        YieldAndDiscountCurve discountCurve = (YieldAndDiscountCurve) discountObject;

        Object spotObject = inputs.getValue(getSpotRequirement(security));
        if (spotObject == null) {
            throw new OpenGammaRuntimeException("Could not get Underlying's Spot value");
        }
        double spot = (Double) spotObject;

        // 3. Compute the forward
        final double discountFactor = discountCurve.getDiscountFactor(expiry);
        Validate.isTrue(discountFactor != 0,
                "The discount curve has returned a zero value for a discount bond. Check rates.");
        final double forward = spot / discountFactor;

        ValueSpecification valueSpec = getValueSpecification(security);
        return Collections.singleton(new ComputedValue(valueSpec, forward));
    }

    @Override
    public ComputationTargetType getTargetType() {
        return ComputationTargetType.SECURITY;
    }

    @Override
    public boolean canApplyTo(FunctionCompilationContext context, ComputationTarget target) {
        if (target.getType() != ComputationTargetType.SECURITY) {
            return false;
        }
        return target.getSecurity() instanceof EquityVarianceSwapSecurity;
    }

    @Override
    public Set<ValueRequirement> getRequirements(FunctionCompilationContext context, ComputationTarget target,
            ValueRequirement desiredValue) {
        EquityVarianceSwapSecurity security = (EquityVarianceSwapSecurity) target.getSecurity();
        return Sets.newHashSet(getSpotRequirement(security), getDiscountRequirement(security));
    }

    // Note that createValueProperties is _not_ used - use will mean the engine can't find the requirement
    private ValueRequirement getDiscountRequirement(EquityVarianceSwapSecurity security) {
        ValueProperties properties = ValueProperties.builder().with(ValuePropertyNames.CURVE, _curveDefinitionName)
                .get();
        return new ValueRequirement(ValueRequirementNames.YIELD_CURVE, ComputationTargetType.PRIMITIVE,
                security.getCurrency().getUniqueId(), properties);
    }

    private ValueRequirement getSpotRequirement(EquityVarianceSwapSecurity security) {
        ExternalId id = security.getSpotUnderlyingId();
        return new ValueRequirement(MarketDataRequirementNames.MARKET_VALUE, id);
    }

    @Override
    public Set<ValueSpecification> getResults(FunctionCompilationContext context, ComputationTarget target) {
        return Collections.singleton(getValueSpecification((EquityVarianceSwapSecurity) target.getSecurity()));
    }

    // Note that the properties are created using createValueProperties() - this sets the name of the function in the properties.
    // Not using this means that this function will not work
    private ValueSpecification getValueSpecification(EquityVarianceSwapSecurity security) {
        ValueProperties properties = createValueProperties()
                .with(ValuePropertyNames.CURRENCY, security.getCurrency().getCode())
                .with(FORWARD_CALCULATION_METHOD, FORWARD_FROM_SPOT_AND_YIELD_CURVE).get();
        ExternalId id = security.getSpotUnderlyingId();
        ValueRequirement requirement = new ValueRequirement(ValueRequirementNames.FORWARD,
                ComputationTargetType.PRIMITIVE, UniqueId.of(id.getScheme().getName(), id.getValue()));
        return new ValueSpecification(requirement, properties);
    }
}