Not able to understant the code

AI & Machine learning
1

Course Name: Options Trading Strategies In Python: Basic, Section No: 1, Unit No: 15, Unit type: Notebook

In [4] : I am not able to understand:

ax.spines

ax.plot

Also how does the Y-axis is at zero position.

If someone can please elaborate or explain it a little bit.

Thank You.

2

Hi Mridul,



The plot method is used to plot the line graph. It takes the element of x and y as input parameters. 



ax.plot(sT, payoff_long_call, label='Call option buyer payoff')



In the above code, we passed stock price (sT) and long call payoff (payoff_long_call) as x and y-axis respectively to plot. We also passed the label of the plot using the label parameter.



The spines method is used to adjust the location and appearance of axes. 



ax.spines['bottom'].set_position('zero')



The above code makes the x-axis intersect the y-axis at 0.0.



If you change the code to 



ax.spines['bottom'].set_position('centre')



Then it draws the x-axes such that it intersects the y-axes in its centre.