> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincept.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Dupire Local Volatility Model

> Price European options using the Dupire local volatility model. Local volatility models assume volatility is a deterministic function of spot price and time, perfectly fitting observed market option prices. This endpoint uses a flat local volatility (constant across strikes and time) as a baseline, useful for comparing with stochastic volatility models or as a benchmark pricing tool. [Tier: ENTERPRISE, Credits: 10]



## OpenAPI

````yaml api-specs/models.json post /quantlib/models/dupire/price
openapi: 3.1.0
info:
  title: FinceptQuantLib API - Models
  description: >-
    Advanced financial modeling module for short rate models, stochastic
    volatility, jump-diffusion processes, and local volatility models. Pro Tier
    required (5 credits per request).
  version: 3.0.0
  contact:
    name: Fincept API Support
    url: https://fincept.in
servers:
  - url: https://api.fincept.in
    description: Fincept API Production Server
security:
  - APIKeyHeader: []
tags:
  - name: quantlib-models
    description: >-
      Advanced financial modeling including short rate models, stochastic
      volatility, jump-diffusion, and local volatility models
    x-displayName: Models
paths:
  /quantlib/models/dupire/price:
    post:
      tags:
        - quantlib-models
      summary: Dupire Local Volatility Model
      description: >-
        Price European options using the Dupire local volatility model. Local
        volatility models assume volatility is a deterministic function of spot
        price and time, perfectly fitting observed market option prices. This
        endpoint uses a flat local volatility (constant across strikes and time)
        as a baseline, useful for comparing with stochastic volatility models or
        as a benchmark pricing tool. [Tier: ENTERPRISE, Credits: 10]
      operationId: dupire_price
      requestBody:
        required: true
        content:
          application/json:
            schema:
              type: object
              required:
                - strike
                - T
              properties:
                spot:
                  type: number
                  description: Current spot price of the underlying asset
                r:
                  type: number
                  default: 0
                  description: Risk-free rate (annualized)
                q:
                  type: number
                  default: 0
                  description: Dividend yield (annualized)
                sigma:
                  type: number
                  default: 0.2
                  description: >-
                    Flat local volatility (annualized). In full Dupire, this
                    would be σ(K,T)
                strike:
                  type: number
                  description: Option strike price
                T:
                  type: number
                  description: Time to maturity in years
                option_type:
                  type: string
                  enum:
                    - call
                    - put
                  default: call
                  description: Option type
              example:
                spot: 100
                r: 0.05
                q: 0.02
                sigma: 0.25
                strike: 105
                T: 0.5
                option_type: call
      responses:
        '200':
          description: Successfully priced option with Dupire model
          content:
            application/json:
              schema:
                type: object
                properties:
                  success:
                    type: boolean
                    example: true
                  data:
                    type: object
                    properties:
                      price:
                        type: number
                        description: Option price from local volatility model
                      option_type:
                        type: string
                        example: call
                    example:
                      price: 4.76
                      option_type: call
        '401':
          $ref: '#/components/responses/UnauthorizedError'
        '402':
          $ref: '#/components/responses/InsufficientCreditsError'
        '422':
          $ref: '#/components/responses/ValidationError'
components:
  responses:
    UnauthorizedError:
      description: Authentication information is missing or invalid
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: string
                example: Invalid API key
    InsufficientCreditsError:
      description: Insufficient credits to complete the request
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: string
                example: >-
                  Insufficient credits. This endpoint requires 5 credits.
                  Current balance: 2 credits.
    ValidationError:
      description: Request validation failed
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: array
                items:
                  type: object
                  properties:
                    loc:
                      type: array
                      items:
                        type: string
                    msg:
                      type: string
                    type:
                      type: string
          example:
            detail:
              - loc:
                  - body
                  - kappa
                msg: field required
                type: value_error.missing
  securitySchemes:
    APIKeyHeader:
      type: apiKey
      in: header
      name: X-API-Key
      description: >-
        API key for authentication. Get your key at
        https://api.fincept.in/auth/register

````