Financial Toolbox    
opprofit

Option profit

Syntax

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.

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

returns

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

See Also

binprice, blsprice


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