Description Usage Arguments Note References See Also Examples
The write.call() function generates a graph showing the profits and losses of short call options and long stock portfolios or long call options and short stock portfolios. The reason for the strategy of selling covered call right is that it is bullish on the market, but worries about the future stock price decline. If the future stock price falls, the gains of short call right can be used to compensate for the losses. Its reverse operation is short-sighted on the market, but also worried about the future stock price rise, if the future stock price rises, we can compensate for the loss through the implementation of the right to buy.
1 | writing.call(K = 40, opt = 5, S = 42, position = "long")
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K |
Execution price of call option |
opt |
The Price of Call Options |
S |
Current stock price, default value is 42 |
position |
Specify whether to use the forward redemption strategy (-C+S) or the reverse protection strategy (+C-S). |
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 the writing. call command to call out the source code of the function, and eliminate the occlusion problem by modifying the corresponding graphic parameters.
John C.Hull. Options, Futures, and other Derivatives 9ed
1 2 | writing.call(K = 40, opt = 5, S = 42)
writing.call(K = 40, opt = 5, S = 42, position = "short")
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