Option Basics - Calls, Puts, and Payoffs › Key Parameters
Michael BrenndoerferNovember 15, 20251 min read
Quantitative FinanceAll chapters Part 3 of 15Forwards, Futures, and Options
Option Basics - Calls, Puts, and Payoffs › Key ParametersOne section · Sections in this chapter12 / 15 ↓
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The key parameters for the payoff calculator are:
- positions: A list of OptionPosition objects defining the portfolio.
- S_range: Array of potential stock prices at expiration used to simulate outcomes.
- strike: The exercise price for each option contract.
- premium: The cost (debit) or income (credit) associated with each position.