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#172easyOptions & Derivatives

Option Strategy Payoff

Time Limit: 2sMemory: 256MB

Problem

Given a multi-leg option strategy, compute the total profit at expiry for a given stock price.

Each leg specifies:

  • Type: call or put
  • Direction: long (bought) or short (sold)
  • Strike price
  • Premium paid or received

Input Format

Line 1: n (number of legs) Next n lines: type direction strike premium Last line: S_expiry (stock price at expiry)

Output Format

Total profit rounded to 2 decimal places.

Payoff Logic

  • Long call profit: max(STK,0)premium\max(S_T - K, 0) - \text{premium}
  • Short call profit: premiummax(STK,0)\text{premium} - \max(S_T - K, 0)
  • Long put profit: max(KST,0)premium\max(K - S_T, 0) - \text{premium}
  • Short put profit: premiummax(KST,0)\text{premium} - \max(K - S_T, 0)

Examples

Example 1
Input(Line 1: n (number of legs))
1
call long 100.0 5.0
110.0
Output
5.00

Long call struck at 100, premium 5. At S=110, intrinsic=10, profit=10-5=5.

Example 2
Input(Line 1: n (number of legs))
2
call long 100.0 5.0
call short 110.0 2.0
115.0
Output
7.00

Bull call spread. Long 100-call pays 15-5=10, short 110-call costs 5-2=-3, total=7.

Constraints

  • 1 <= number of legs <= 20
  • type is 'call' or 'put'
  • direction is 'long' or 'short'
  • 0.0 <= strike <= 100000.0
  • 0.0 <= premium <= 100000.0
  • 0.0 <= S_expiry <= 100000.0
  • Output total profit to 2 decimal places
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