bull: Visualization of Bull Market Spread Strategy

In czxa/FMFE: Options and Futures in Financial Mathematics and Financial Engineering

Description

The bull() function generates a graph showing the profit and loss of bull spread trading strategies using call or put options. The reason why the bull market spreads strategy is constructed is that it is bullish on the market.

Usage

bull(K1 = 40, opt1 = 5, K2 = 60, opt2 = 3, type = "call")

Arguments

K1	Execution Price of Option 1
opt1	Price of option 1
K2	Execution Price of Option 2
opt2	Price of Option 2
type	Specifies whether to use call option or put option to carry bear market spread arbitrage. If it is a call option, use type = "call", indicating that the strategy is to buy a call option with a low execution price and sell a call option with a high execution price; if it is a put option, use type = "put", indicating that the strategy is to buy a put option with a low execution price and sell a put option with a high execution price. The default value is "call".

Note

If there is a mutual occlusion problem in the image, you can run the dev. new () command first. If there is still occlusion problem, you can directly run bull command to call out the source code of the function, and eliminate the occlusion problem by modifying the corresponding graphic parameters.

References

OTS package, WangXu [e-mail]

See Also

bear, butterfly

Examples

bull(K1 = 40, opt1 = 5, K2 = 60, opt2 = 3)
bull(K1 = 40, opt1 = 3, K2 = 45, opt2 = 5, type = "put")

czxa/FMFE documentation built on Nov. 6, 2019, 4:58 a.m.