MathGroup Archive 2009

[Date Index] [Thread Index] [Author Index]

Search the Archive

Re: Simple Stock Options Calculation

  • To: mathgroup at smc.vnet.net
  • Subject: [mg105556] Re: [mg105543] Simple Stock Options Calculation
  • From: Michael Stern <nycstern at gmail.com>
  • Date: Wed, 9 Dec 2009 05:41:43 -0500 (EST)
  • References: <200912081143.GAA29161@smc.vnet.net>

This isn't really a Mathematica question so much as it is a basic math 
question. Anyway, you have an error in that you have conflated the 
number of shares (number of contracts*100) with the number of contracts, 
and another error in that you are multiplying the fee times the price; 
assuming that's a dollar fee, it makes no sense. Your basic equation 
should look something like

total cost = ((dollar price per contract+ dollar fee per contract) * 
number of contracts) + dollartradecommission

If you have been given your fee per contract or your commission in 
percentage terms, the math will look a little different.

And in real life, I don't think I've ever seen both fee per contract and 
commission; generally it's one or the other.

MS


On Dec 8, 2009, at 6:43 AM, Nicholas Kormanik wrote:

>
> Trying to set up way to find the number of options contracts one can
> purchase with a given amount of money.  Could someone please edit the
> code if needed?  Or does this look okay as is?
>
> Thanks.....
>
>
> pricepercontract := .71
> numbercontracts := x
> feepercontract := .75
> tradecomission := 9.99
> totalcost := 25000
>
> Solve[100*pricepercontract*numbercontracts*feepercontract +
>   tradecomission == totalcost, x]
>
>
>
>



  • Prev by Date: Re: Special Input Characters' Reference Table
  • Next by Date: putting a label within a frame edge
  • Previous by thread: Simple Stock Options Calculation
  • Next by thread: Re: Simple Stock Options Calculation