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/* -*- mode: c++; tab-width: 4; indent-tabs-mode: nil; c-basic-offset: 4 -*- */

/*
 Copyright (C) 2009 Andrea Odetti

 This file is part of QuantLib, a free-software/open-source library
 for financial quantitative analysts and developers - http://quantlib.org/

 QuantLib is free software: you can redistribute it and/or modify it
 under the terms of the QuantLib license.  You should have received a
 copy of the license along with this program; if not, please email
 <quantlib-dev@lists.sf.net>. The license is also available online at
 <http://quantlib.org/license.shtml>.

 This program is distributed in the hope that it will be useful, but WITHOUT
 ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS
 FOR A PARTICULAR PURPOSE.  See the license for more details.
*/

#ifndef quantlib_longstaff_schwartz_multi_path_pricer_hpp
#define quantlib_longstaff_schwartz_multi_path_pricer_hpp

#include <ql/termstructures/yieldtermstructure.hpp>
#include <ql/math/functional.hpp>
#include <ql/methods/montecarlo/pathpricer.hpp>
#include <ql/methods/montecarlo/multipath.hpp>
#include <ql/methods/montecarlo/lsmbasissystem.hpp>
#include <ql/experimental/mcbasket/pathpayoff.hpp>
#if defined(__GNUC__) && (((__GNUC__ == 4) && (__GNUC_MINOR__ >= 8)) || (__GNUC__ > 4))
#pragma GCC diagnostic push
#pragma GCC diagnostic ignored "-Wunused-local-typedefs"
#endif
#include <boost/bind.hpp>
#if defined(__GNUC__) && (((__GNUC__ == 4) && (__GNUC_MINOR__ >= 8)) || (__GNUC__ > 4))
#pragma GCC diagnostic pop
#endif
#include <boost/function.hpp>

namespace QuantLib {

    //! Longstaff-Schwarz path pricer for early exercise options
    /*! References:

        Francis Longstaff, Eduardo Schwartz, 2001. Valuing American Options
        by Simulation: A Simple Least-Squares Approach, The Review of
        Financial Studies, Volume 14, No. 1, 113-147

        \ingroup mcarlo

        \test the correctness of the returned value is tested by
              reproducing results available in web/literature
    */
    class LongstaffSchwartzMultiPathPricer : public PathPricer<MultiPath> {
      public:

        LongstaffSchwartzMultiPathPricer(
            const boost::shared_ptr<PathPayoff>& ,
            const std::vector<Size> &,
            const std::vector<Handle<YieldTermStructure> > &,
            const Array &,
            Size ,
            LsmBasisSystem::PolynomType );

        Real operator()(const MultiPath& multiPath) const;
        virtual void calibrate();

      protected:
        struct PathInfo {
            PathInfo(Size numberOfTimes);

            Size pathLength() const;

            Array                   payments;
            Array                   exercises;
            std::vector<Array>      states;
        };

        PathInfo transformPath(const MultiPath& path) const;

        bool  calibrationPhase_;

        const boost::shared_ptr<PathPayoff> payoff_;

        boost::scoped_array<Array> coeff_;
        boost::scoped_array<Real> lowerBounds_;

        const std::vector<Size> timePositions_;
        const std::vector<Handle<YieldTermStructure> > forwardTermStructures_;
        const Array dF_;

        mutable std::vector<PathInfo> paths_;
        const   std::vector<boost::function1<Real, Array> > v_;
    };

}


#endif