Trigger Fn
Key Trigger Fn in Contingent Claim refers to the optional condition which, if satisfied, activates the payoff defined by the function associated with the key On Pmt Fn.
During a simulation run the condition is valuated at the times specified in a table associated with the key Time Plan of the related Payoff Policy.
Technically the condition is represented by an object of the abstract typeTrigger, of which the ultimate type can be either Real Trigger or Timed Real Trigger.
The Real Trigger object should be used when the condition is independent of time as it represents a predicate function that maps a sequence of u numbers x₁ , x₂ , ... , xᵤ to the boolean result TRUE or FALSE.
The Timed Real Trigger object should be used when the condition is time-dependent as it represents a predicate function that maps a date followed by a sequence of u numbers x₁ , x₂ , ... , xᵤ to the boolean result.
The u numbers x₁ , x₂ , ... , xᵤ are the quotes of the u underlyings defined in the related Payoff Policy as they are being observed at the time when the condition here is valuated.
If the function's valuation results to TRUE, the payoff function defined through the key On Pmt Fn is valuated at the time specified by one of the keys On Pmt Val Delay or On Pmt Val Date and the resulting amount is paid at the time specified by one of On Pmt Delay or On Pmt Date.
If this entry is missing, the default is the object RealBoolTransf that represents a permanently TRUE condition.