What pricing models can I use in my valuation?

For each type of instrument you wish to value, LUSID provides a default pricing model:

You can change the default pricing model for any instrument type except Equity to provide a more suitable or sophisticated result. You can even conditionally select different pricing models for the same instrument type.

Note: The pricing model you choose impacts the quantity and quality of market data required. Find out more about this.

The complete set of built-in pricing models is listed here. To help you discover what pricing models are valid for an instrument type, call the GetExistingInstrumentModels API with the LUID of an instrument of that type, for example (LUID highlighted in the URL):

curl -X GET "https://<your-domain>.lusid.com/api/api/instruments/LUID_00003D64/models?instrumentScope=default&recipeScope=default"
  -H "Authorization: Bearer <your-API-access-token>"

The response contains the currently-valid pricing models for (in this case) an equity option:

{
  "instrumentId": "LUID_00003D64",
  "supportedModels": [
    "SimpleStatic",
    "Discounting",
    "BlackScholes",
    "ConstantTimeValueOfMoney",
    "Bachelier"
  ],
  ...
}

Appendix A

The following table lists valid pricing models for certain instrument types (this may be useful if you have not yet mastered instruments):