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6 EXAMINING THE CLASS IN DETAIL The code that implements the class for a plain one-factor option has been discussed in some detail in the previous section. We have not done justice to all the details but our objective was to create ‘working’ code as soon as possible in the book. Furthermore, we shall discuss the syntax in greater detail in later chapters, especially Chapter 4. Nonetheless, it is advisable at this stage to say something about the syntax that we use here. In this sense we avoid forward references.

Limit as m -> INFINITY double FutureValueContinuous(double P0, long nPeriods, double r); // Future value of an ordinary annuity double OrdinaryAnnuity(double A, long nPeriods, double r); // Present Value double PresentValue(double Pn, long nPeriods, double r); C++ Fundamentals and My First Option Class 43 // Present Value of a series of future values double PresentValue(const Vector& prices,long nPeriods,double r); // Present Value of an ordinary annuity double PresentValueOrdinaryAnnuity(double A,long nPer,double r); } #endif This is just a set of functions that are logically related by the use of the keyword ‘namespace’ (we shall discuss namespaces in more detail in a later chapter).

9 SUMMARY AND CONCLUSIONS We have given an overview of a number of important issues that you will need to master as soon as possible. In particular, we discuss how to set up a C++ project consisting of multiple header and code files. The goal of this chapter was to show how to assemble related functionality in the form of files containing C++ code to form a running program. It is important that you understand how to compile, link and run simple programs as discussed in this chapter. 10 EXERCISES AND PROJECTS 1.

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