com.opengamma.financial.analytics.model.equity.varianceswap.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.varianceswap;

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

import org.apache.commons.lang.Validate;
import org.threeten.bp.ZonedDateTime;

import com.google.common.collect.Iterables;
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.ComputationTargetSpecification;
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.target.ComputationTargetType;
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.FinancialSecurityTypes;
import com.opengamma.financial.security.equity.EquityVarianceSwapSecurity;
import com.opengamma.id.ExternalId;

/**
 *
 */
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";

    @Override
    public Set<ComputedValue> execute(final FunctionExecutionContext executionContext, final FunctionInputs inputs,
            final ComputationTarget target, final Set<ValueRequirement> desiredValues) {
        final ValueRequirement desiredValue = Iterables.getOnlyElement(desiredValues);
        final String curveName = desiredValue.getConstraint(ValuePropertyNames.CURVE);
        final String curveCalculationConfig = desiredValue
                .getConstraint(ValuePropertyNames.CURVE_CALCULATION_CONFIG);
        // 1. Get the expiry _time_ from the trade
        final EquityVarianceSwapSecurity security = (EquityVarianceSwapSecurity) target.getSecurity();
        final double expiry = TimeCalculator.getTimeBetween(ZonedDateTime.now(executionContext.getValuationClock()),
                security.getLastObservationDate());

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

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

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

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

    @Override
    public Set<ValueRequirement> getRequirements(final FunctionCompilationContext context,
            final ComputationTarget target, final ValueRequirement desiredValue) {
        final Set<String> curveNames = desiredValue.getConstraints().getValues(ValuePropertyNames.CURVE);
        if (curveNames == null || curveNames.size() != 1) {
            return null;
        }
        final String curveName = Iterables.getOnlyElement(curveNames);
        final Set<String> curveCalculationConfigNames = desiredValue.getConstraints()
                .getValues(ValuePropertyNames.CURVE_CALCULATION_CONFIG);
        if (curveCalculationConfigNames == null || curveCalculationConfigNames.size() != 1) {
            return null;
        }
        final String curveCalculationConfigName = Iterables.getOnlyElement(curveCalculationConfigNames);
        final EquityVarianceSwapSecurity security = (EquityVarianceSwapSecurity) target.getSecurity();
        return Sets.newHashSet(getSpotRequirement(security),
                getDiscountRequirement(security, curveName, curveCalculationConfigName));
    }

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

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

    @Override
    public Set<ValueSpecification> getResults(final FunctionCompilationContext context,
            final ComputationTarget target) {
        return Collections.singleton(
                getValueSpecification(target.toSpecification(), (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(final ComputationTargetSpecification targetSpec,
            final EquityVarianceSwapSecurity security) {
        final ValueProperties properties = createValueProperties()
                .with(ValuePropertyNames.CURRENCY, security.getCurrency().getCode())
                .withAny(ValuePropertyNames.CURVE_CALCULATION_CONFIG).withAny(ValuePropertyNames.CURVE)
                .with(FORWARD_CALCULATION_METHOD, FORWARD_FROM_SPOT_AND_YIELD_CURVE).get();
        return new ValueSpecification(ValueRequirementNames.FORWARD, targetSpec, properties);
    }
}