Benoist & Company delivers pricing algorithms and specifications for pricing tools for virtually all asset classes. While some exchange traded assets, like shares, are generally priced mark to market, many linear and non-linear instruments depend on valuation functions that are continuously under research and improvement. With the innovative Volatility Interpolation Tool VIP, Benoist & Company has also developed the first software that generates arbitrage-free price- and vol surfaces.
Though it may seem trivial, it is not always easy to determine a consistent set of prices for mark to market instruments, which are often needed as input for derivative pricing or further stochastic analysis. Simultaneous prices for securities traded in different time zones are quite a challenge, as much as gaps in time series to be filled with techniques compatible with the further analysis.
We are constantly up to date in the latest model developments which we investigate and valuate on mathematical grounds and especially with a view to deliver a robust calibration. Often we can suggest our clients model alternatives that are improved or more consistent in their mathematical framework and calibration. For example with our Dividend Tool DITO, the client can not only calculate a consensus dividend estimator but can use its own experience to calibrate the weights.
Even if the math is appealing, we are aware that a model is always just a model, i.e. every model is based on certain assumptions that limit its applicability.
Customized pricing engines that mark the difference to competitors are at the core of some trading desks. When it comes to trading of structured financial products, a quick, yet reliable pricing is essential. It is important that the chosen models are calibrated carefully and implemented efficiently to fit into the existing IT environment.
We offer state of the art methods, techniques and tools, and we always strive to suggest the combination which is best suited for your companys needs.
Pricing / Trading