Financial Mathematics I : Note the question is clear it needs To write program l

Question

Financial Mathematics I:Note the question is clear it needs To write program like Matlab or Excell  to implement explicit and implicit finite difference methods.the question depends on the question 1 posted Below

Q2) Write a program to implement explicit and implicit finite difference methods.

Financial Mathematics I: options, futures and other derivatives (9th edition) Chapter 17: Options on stock indices and currencies, Chapter 18: Futures options ,Chapter 21: Basic numerical procedures ,Chapter 27: More on models and numerical procedures

Use Quesrion 1 to solve The question above

q1)Design and implement a computer program to value options using a binomial/trinomial tree. You can use a programming language of your choice. Do not use Excel/VBA for this exercise. Implement appropriate switches so that the program can value European or American options, options on stocks (dividend or non-dividend paying), stock indices, currencies, and futures. Calculate the Greeks in your program. Test your program using many of the examples in the book and the assignments. Please make sure to include complete instructions for me to install the software and test your program. If I am not able to test your program I cannot grade it and give you marks.

Note the question is clear it needs To write program like Matlab or Excell  to implement explicit and implicit finite difference methods.the question depends on the question 1 posted above

Explanation / Answer

def is_bintree(T):   
if type(T) isn't tuple:   
come back False   
if T == ():   
come back True   
if len(T) != 3:   
come back False   
if is_bintree(T[1]) and is_bintree(T[2]):   
come back True   
come back False
def bst_min(T):   
if T == ():   
come back None   
if not T[1]:
come back T[0]   
come back bst_min(T[1])
def bst_max(T):   
if T == ():   
come back None   
if not T[2]:
come back T[0]   
come back bst_max(T[2])
  
def is_bst(T):   
if not is_bintree(T):   
come back False
if T == ():   
come back True
if not is_bst(T[1]) or not is_bst(T[2]):
come back False   
  
if T[1] == () and T[2] == ():   
come back True
  
if T[2] == ():   
come back bst_max(T[1]) < T[0]   
if T[1] == ():   
come back T[0] < bst_min(T[2])   
come back bst_max(T[1]) < T[0] < bst_min(T[2])   
def bst_search(T,x):   
if T == ():   
return T   
if T[0] == x:   
return T   
if x < T[0]:   
come back bst_search(T[1],x)   
come back bst_search(T[2],x)
def bst_insert(T,x):   
if T == ():   
return (x,(),())   
elif x < T[0]:   
come back (T[0],bst_insert(T[1],x),T[2])
else:   
come back (T[0],T[1],bst_insert(T[2],x))
def delete_min(T):   
if T == ():   
return T
if not T[1]:
come back T[2]   
else:   
come back (T[0],delete_min(T[1]),T[2])
def bst_delete(T,x):   
assert T, "deleting price not in tree"   
  
if x < T[0]:   
come back (T[0],bst_delete(T[1],x),T[2])   
elif x > T[0]:   
come back (T[0],T[1],bst_delete(T[2],x))   
else:   
# T[0] == x   
if not T[1]:   
come back T[2]   
elif not T[2]:   
come back T[1]   
else:
come back (bst_min(T[2]),T[1],delete_min(T[2]))
def print_bintree(T,indent=0):   
if not T:   
print('*')   
return   
else:   
print(T[0])   
print(' '*(indent + len(T[0])-1)+'---', end = '')   
print_bintree(T[1],indent+3)
print(' '*(indent + len(T[0])-1)+'---', end = '')   
print_bintree(T[2],indent+3)
def print_func_space(x):   
print(x,end=' ')
def inorder(T,f):   
if not is_bst(T):   
return   
if not T:   
return   
inorder(T[1],f)
f(T[0])   
inorder(T[2],f)
# Programming project: offer implementations for the functions below,
# i.e., replace all the pass statements within the functions below.
# Then add tests for these functions within the block # that starts "if __name__ == '__main__':"
def preorder(T,f):   
pass
def postorder(T,f):   
pass
def tree_height(T):   
# Empty tree has height -1   
pass
def balance(T):   
# returns the peak of the left subtree of T   
# # minus the peak of the proper subtree of T   
# i.e., the balance of the foundation of T   
pass
def minBalance(T):   
# returns the minimum price of balance(S) for all subtrees S of T   
pass
def maxBalance(T):   
# returns the most price of balance(S) for all subtrees S of T   
pass
def is_avl(T):   
# Returns True if T is associate AVL tree, False otherwise   
# # Hint: use minBalance(T) and maxBalance(T)
pass
# Add tests for the on top of seven functions below
if __name__ == '__main__':
K = ()   
for x in ['Joe','Bob', 'Phil', 'Paul', 'Marc', 'Jean', 'Jerry', 'Alice', 'Anne']:   
K = bst_insert(K,x)
  
print(' Tree components in sorted order ')   
inorder(K,print_func_space)   
print()
  
print(' Print full tree ')   
print_bintree(K)
  
print(" Delete Bob and print tree ")   
K = bst_delete(K,'Bob')   
print_bintree(K)   
print()
  
print(" Print subtree at 'Phil' ")   
print_bintree(bst_search(K,'Phil'))   
print()

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