FinancePy

FinancePy API Reference

Black Scholes Hedging Sim

financepy.models.black_scholes_hedging_sim

Classes

HedgePathResult

HedgePathResult(history: pandas.core.frame.DataFrame | None, hedging_error: float, terminal_stock_price: float, option_payoff: float, initial_option_value: float, total_transaction_costs: float) -> None
Results from one delta-hedged European option path.

HedgeSimulationResult

HedgeSimulationResult(hedging_errors: numpy.ndarray, terminal_stock_prices: numpy.ndarray, option_payoffs: numpy.ndarray, transaction_costs: numpy.ndarray, initial_option_value: float) -> None
Results from a multi-path delta-hedging simulation.

Methods

num_paths

No description available.

mean_hedging_error

No description available.

std_hedging_error

No description available.

rmse

No description available.

mean_transaction_cost

No description available.

summary

summary(self) -> pandas.core.series.Series

No description available.

plot_hedging_error_vs_terminal_stock_price

plot_hedging_error_vs_terminal_stock_price(self)
Plot terminal stock price against terminal hedging error.

Functions

simulate_hedge_paths

simulate_hedge_paths(num_paths: int, num_options: int, option_type_int: int, stock_price: float, strike_price: float, risk_free_rate: float, dividend_yield: float, implied_volatility: float, realized_volatility: float, time_to_expiry: float, num_steps: int = 252, stock_drift: float | None = None, transaction_cost_rate: float = 0.0, seed: int | None = None) -> financepy.models.black_scholes_hedging_sim.HedgeSimulationResult

No description available.

simulate_single_hedge_path

simulate_single_hedge_path(num_options: int, option_type_int: int, stock_price: float, strike_price: float, risk_free_rate: float, dividend_yield: float, implied_volatility: float, realized_volatility: float, time_to_expiry: float, num_steps: int = 252, stock_drift: float | None = None, transaction_cost_rate: float = 0.0, rng: numpy.random._generator.Generator | None = None, store_history: bool = True) -> financepy.models.black_scholes_hedging_sim.HedgePathResult
Simulate one delta-hedged European option path. The hedge calculation itself is performed entirely by _simulate_single_path_kernel().
Generated automatically from the FinancePy source code. Do not edit this file manually.