What is 0.8*spot price, 1.2*spot price

AI & Machine learning
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Course Name: Options Trading Strategies In Python: Basic, Section No: 4, Unit No: 7, Unit type: Exercise

please explain how to interpret 0.8*spot price, 1.2*spot price 

 

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sT = np.arange(0.8*spot_price,1.2*spot_price)

The arange method of NumPy returns evenly spaced values within a given interval. The above line of code generates numbers between 0.8* spot_price to 1.2*spot_price.

If the spot price is 100, then the generated numbers are: 80, 81, 82,.......120 as the default step is 1. 

Here, 0.8 and 1.2 are random numbers used to estimate the stock price at call options expiration. 

Hope that helps.

Thanks!
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Thanks, It helps