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] > > > >
- References:
- Simple Stock Options Calculation
- From: Nicholas Kormanik <nkormanik@gmail.com>
- Simple Stock Options Calculation