WHERE DO I GO WRONG?

Options & Futures
1

Import libraries

import numpy as np

import pandas as pd


Tata motors stock price 

spot_price = 430 


Stock price range at expiration of the call

sT = np.arange(0.98spot_price,1.03spot_price)


Put strike and premium

strike_price = 430 

premium = 3


Put payoff

Type your code here

def put_payoff(sT, strike_price, premium):

pnl = np.where(sT<strike_price,strike_price-sT,0)

return pnl

payoff_put = put_payoff(sT, strike_price, premium)

fig, ax = plt.subplots(figsize=(8,5))

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

ax.plot(sT,payoff_put,label='Put Buyers Payoff')

plot.xlabel('Tata Motors Price')

plot.ylabel('Profit and Loss')

plot.legend()

plot.show()



I wrote the above code to work out Put Option Payoff. While running the code, it gives error at line 18 i.e. pnl = np.where(sT



Even solution code does not give any hint to my mistake. How can I correct ?

2

The below code requires indent or four spaces. in other words, whatever is inside the function should start with four spaces.



def put_payoff(sT, strike_price, premium):

    pnl = np.where(sT<strike_price,strike_price-sT,0)

    return pnl