opprofit (Financial Toolbox)

Option profit

Syntax

Profit = opprofit(AssetPrice, Strike, Cost, PosFlag, OptType)

Arguments

AssetPrice
Asset price.

Strike
Strike or exercise price.

Cost
Cost of the option.

PosFlag
Option position. 0 = long, 1 = short.

OptType
Option type. 0 = call option, 1 = put option.

`AssetPrice`	Asset price.
`Strike`	Strike or exercise price.
`Cost`	Cost of the option.
`PosFlag`	Option position. 0 = long, 1 = short.
`OptType`	Option type. 0 = call option, 1 = put option.

Description

Profit = opprofit(AssetPrice, Strike, Cost, PosFlag, OptType) returns the profit of an option.

Examples

Buying (going long on) a call option with a strike price of $90 on an underlying asset with a current price of $100 for a cost of $4

```
Profit = opprofit(100, 90, 4, 0, 0)
```

returns

```
Profit =
          6.00
```

a profit of $6 if the option is exercised under these conditions.

See Also

binprice, blsprice

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