opprofit

Option profit

Syntax

Profit = opprofit(AssetPrice,Strike,Cost,PosFlag,OptType)

Description

Profit = opprofit(AssetPrice,Strike,Cost,PosFlag,OptType) returns the profit of an option.

Examples

Calculate the Profit of an Option

This example shows how to return the profit of an option. For example, consider 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.

Profit = opprofit(100, 90, 4, 0, 0)

Profit = 
6

Input Arguments

AssetPrice — Asset price

numeric

Asset price, specified as a scalar or a NINST-by-1 vector.

Data Types: double

Strike — Strike or exercise price

numeric

Strike or exercise price, specified as a scalar or a NINST-by-1 vector.

Data Types: double

Cost — Cost of option

numeric

Cost of the option, specified as a scalar or a NINST-by-1 vector.

Data Types: double

PosFlag — Option position

0 = long | 1 = short

Option position, specified as a scalar or a NINST-by-1 vector using the values 0 (long) or 1 (short).

Data Types: logical

OptType — Option type

0 = call option | 1 = put option

Option type, specified as a scalar or a NINST-by-1 vector using the values 0 (call option) or 1 (put option).

Data Types: logical

Output Arguments

Profit — Option profit

vector

Option profit, returned as a scalar or a NINST-by-1 vector.

Version History

Introduced before R2006a