Source code for vollib.tests.test_black_scholes

import unittest

from vollib.tests.test_utils import TestDataIterator, almost_equal
from vollib.black_scholes import black_scholes
from vollib.black_scholes.implied_volatility import implied_volatility
from vollib.black_scholes.greeks import analytical
from vollib.black_scholes.greeks import numerical


[docs]class TestBlackScholesAgainstBenchmarkValues(unittest.TestCase):
[docs] def setUp(self): self.tdi = TestDataIterator()
[docs] def test_prices(self): while self.tdi.has_next(): row = self.tdi.next_row() S,K,t,r,sigma = row['S'],row['K'],row['t'],row['R'],row['v'] self.assertTrue( almost_equal( black_scholes('c', S, K, t, r, sigma), row['bs_call'], epsilon=.000001 ) ) self.assertTrue( almost_equal( black_scholes('p', S, K, t, r, sigma), row['bs_put'], epsilon=.000001 ) )
[docs] def test_analytical_delta(self): while self.tdi.has_next(): row = self.tdi.next_row() S,K,t,r,sigma = row['S'],row['K'],row['t'],row['R'],row['v'] self.assertTrue( almost_equal( analytical.delta('c', S, K, t, r, sigma), row['CD'], epsilon=.000001 ) ) self.assertTrue( almost_equal( analytical.delta('p', S, K, t, r, sigma), row['PD'], epsilon=.000001 ) )
def _test_analytical_theta(self): while self.tdi.has_next(): row = self.tdi.next_row() S,K,t,r,sigma = row['S'],row['K'],row['t'],row['R'],row['v'] #self.assertTrue( # almost_equal( print analytical.theta('c', S, K, t, r, sigma), row['CT']#, epsilon=.001 # ) #) #self.assertTrue( # almost_equal( print analytical.theta('p', S, K, t, r, sigma), row['PT'] #, epsilon=.000001 # ) #)
[docs] def test_analytical_gamma(self): while self.tdi.has_next(): row = self.tdi.next_row() S,K,t,r,sigma = row['S'],row['K'],row['t'],row['R'],row['v'] self.assertTrue( almost_equal( analytical.gamma('c', S, K, t, r, sigma), row['CG'], epsilon=.000001 ) ) self.assertTrue( almost_equal( analytical.gamma('p', S, K, t, r, sigma), row['PG'], epsilon=.000001 ) )
[docs] def test_analytical_vega(self): while self.tdi.has_next(): row = self.tdi.next_row() S,K,t,r,sigma = row['S'],row['K'],row['t'],row['R'],row['v'] self.assertTrue( almost_equal( analytical.vega('c', S, K, t, r, sigma), row['CV']*.01, epsilon=.01 ) ) self.assertTrue( almost_equal( analytical.vega('p', S, K, t, r, sigma), row['PV']*.01, epsilon=.01 ) )
[docs] def test_analytical_rho(self): while self.tdi.has_next(): row = self.tdi.next_row() S,K,t,r,sigma = row['S'],row['K'],row['t'],row['R'],row['v'] self.assertTrue( almost_equal( analytical.rho('c', S, K, t, r, sigma), row['CR']*.01, epsilon=.000000001 ) ) self.assertTrue( almost_equal( analytical.rho('p', S, K, t, r, sigma), row['PR']*.01, epsilon=.000000001 ) )
[docs] def test_implied_volatility(self): while self.tdi.has_next(): row = self.tdi.next_row() S,K,t,r,sigma = row['S'],row['K'],row['t'],row['R'],row['v'] C,P = black_scholes('c', S, K, t, r, sigma), black_scholes('p', S, K, t, r, sigma) try: iv = implied_volatility(C, S, K, t, r, 'c') self.assertTrue(almost_equal(sigma, iv, epsilon = .0001)) except: print 'could not calculate iv for ', C, S, K, t, r, 'c' iv = implied_volatility(P, S, K, t, r, 'p') self.assertTrue(almost_equal(sigma, iv, epsilon = .001) or (iv ==0.0))
if __name__ == '__main__': unittest.main()