# Price Equity, FX, Commodity, or Energy Instruments

An equity derivative is a contract whose value is at least partly derived from one or more underlying equity, foreign exchange (FX), commodity, or energy securities. This toolbox provides functionality to price, compute sensitivity and hedging analysis to many equity securities. You can price vanilla, Asian, lookback, barrier, and spread options with pricing models that include lattice models, Monte Carlo simulations, multiple closed-form solutions, and finite differences methods.

The object-based framework supports a workflow for creating instruments, models, and pricer objects to price financial instruments. Using these objects, you can price interest-rate, inflation, equity, commodity, FX, or credit derivative instruments. The object-based workflow is an alternative to pricing financial instruments using functions. Working with modular objects for instruments, models, and pricers, you can easily reuse these objects to compare instrument prices for different models and pricing engines. You can use the object-based workflow to price a single instrument or to price a collection of instruments in a portfolio. For more information on the workflow, see Get Started with Workflows Using Object-Based Framework for Pricing Financial Instruments.

Create an equity, FX, or commodity instrument object using `fininstrument`

,
then associate a model using `finmodel`

, and then
specify a pricing method using `finpricer`

.

## Functions

## Live Editor Tasks

Calibrate Pricing Model | Calibrate option pricing model in the Live Editor (Since R2022a) |

## Objects

## Topics

**Price Spread Instrument for a Commodity Using BlackScholes Model and Analytic Pricers**This example shows the workflow to price a commodity

`Spread`

instrument when you use a`BlackScholes`

model and`Kirk`

and`BjerksundStensland`

analytic pricing methods.**Price European Vanilla Call Options Using Black-Scholes Model and Different Equity Pricers**This example shows how to compare European

`Vanilla`

instrument call option prices using a`BlackScholes`

model and different pricing methods.**Use Black-Scholes Model to Price Asian Options with Several Equity Pricers**This example shows how to compare arithmetic and geometric Asian option prices using the

`BlackScholes`

model and various pricing methods.**Hedge Options Using Reinforcement Learning Toolbox**This example shows how to outperform the traditional BSM approach using an optimal option hedging policy.

**Use Deep Learning to Approximate Barrier Option Prices with Heston Model**This example shows how to use Deep Learning Toolbox™ to train a network and obtain predictions on barrier option prices with a Heston model.

**Calibrate Option Pricing Model Using Heston Model**This example shows how to use the

**Calibrate Pricing Model**Live Editor task to calibrate a`Heston`

pricing model to call option prices from the market.**Price Weather Derivatives**This example demonstrates a workflow for pricing weather derivatives based on historically observed temperature data.

**Using Extreme Value Theory and Copula Fitting to Generate Synthetic Data**This example shows the workflow for generating synthetic equity index return data using Extreme Value Theory (EVT) and a copula model.

**Get Started with Workflows Using Object-Based Framework for Pricing Financial Instruments**Use objects to model and price financial instruments.

**Choose Instruments, Models, and Pricers**Select instruments, associated models, and associated pricers.

**Supported Exercise Styles**The following table lists the interest-rate instrument objects with their associated models and pricers and supported

`Exercise`

styles.**Mapping Financial Instruments Toolbox Functions to Object-Based Framework for Instruments, Models, and Pricers**Mapping functions to a workflow using objects for instruments, models, and pricers.