Course Name: Options Trading Strategies In Python: Basic, Section No: 4, Unit No: 6, Unit type: Notebook
in [5] the last section of the code
sT = np.arrange
how did we calculate the value?
.9 & 1.05
The arange method of NumPy returns evenly spaced values within a given interval.
sT = np.arange(0.9*spot_price,1.05*spot_price,1)
The above line of code generates numbers between 0.9* spot_price to 1.05*spot_price.
If the spot price is 100, then the outcome of sT can be: 90, 91, 92,.......104 as the default step is 1 and the last value is not included in the array.
Here, 0.9 and 1.05 are random numbers used to estimate the stock price at call options expiration.
Hope that helps.