| call.spread {roptions} | R Documentation |
Bull/Bear Call Spread Strategy Function
Description
This function can be used to develop a Bull/Bear Call Strategy.
Usage
call.spread(k1, k2, c1, c2, llimit = 20, ulimit = 20)
Arguments
k1 |
Excercise Price of Long call Option |
k2 |
Excercise Price of Short Call Option |
c1 |
Premium of Long call Option |
c2 |
Premium of Short Call Option |
llimit |
Lower limit of stock price at Expiration., Default: 20 |
ulimit |
Upper Limit of Stock Price at Expiration, Default: 20 |
Details
Bull Call Spread uses two call options to create a range consisting of a lower strike price and an upper strike price.bear call spread is achieved by purchasing call options at a specific strike price while also selling the same number of calls with the same expiration date, but at a lower strike price.
Value
OUTPUT_DESCRIPTION Returns the profit/loss generated from the strategy along with the profit/loss of individual contract and an interactive graph for the same.
Examples
call.spread(1.2, 3.2, 100, 105)