Function File: Profit = opprofit (AssetPrice, Strike, Cost, PosFlag, OptType)

Compute profit of an option.

  • Variable: AssetPrice The price of the underlying asset at the expiry time.
  • Variable: Strike The strike price the option is written on.
  • Variable: Cost The premium paid/charged for the option.
  • Variable: PosFlag Option position. 0 = long, 1 = short.
  • Variable: OptType Option type. 0 = call option, 1 = put option.

See also: binprice, blsprice.

Package: financial