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Quantica Alpha 1.2 Quick Start |
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Installing Quantica: Installation Prerequisites: - Windows XP (Quantica will be cross platform soon, as in it will work on Linux, Mac and Windows.)
- Uninstall any old versions of Quantica using the Quantica uninstaller from the start menu
- Administrative Privileges
Obtaining and Installing Quantica: -
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Double click the installer and you should see the license agreement shown below. Please read through the license agreement and click the "I Agree" button.
Next, you will see the choose components window like the one below. The default selections are recommended. So, please just click the "Next" button.
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Now, you should be asked to choose the installation location like in the window below. The default location is recommended so please click the "Install" button.
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Finally you should be presented with the "Installation Complete" window. Please click the "Close" button. Running Quantica:
This section will walk you through how to use Quantica to price a Foreign Exchange Option. Everything from starting Quantica to runing a pricing model. The example we will be working with is the following: The Australian dollar is currently worth 0.6100 U.S. dollars and this exchange rate has a volatility of 12%. The Australian risk-free rate is 7% and the U.S. risk-free rate is 5%. What is the price for a one year European call option with a strike price of 0.6000 using the Black-Scholes pricing model? If you get stuck or are unsure of an input format please mouse over the text box in question and a balloon will pop up. There is a help balloon for most text boxes, especially the ones where formats can vary. - Start Quantica by selection "Start"->"All Programs"->"Quantica"->"Quantica". Now, Quantica should be running as this image illustrates:
- Type in the numbers from our example as follows:
- Press the "Calculate" button and you should get results that look like this:
- At this point the "Volatility Skew" button has become active; press the "Volatility Skew" button to chart the details of the option you just priced:
Currently European Black-Scholes is just one of several pricing models that are part of release alpha 1.1. We also support several American, Exotic and several more European pricing models. In addition we have removed some of the core features of the product for this release please see more details here.
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