Covered-call payoff table

easyFinanceacceptance —~15 min

Implement covered_call_pnl(entry, strike, premium, expiry_prices) — the profit per share of a covered call (long stock bought at entry, short call at strike sold for premium) for each price in expiry_prices. Above the strike the stock is called away, so the upside is capped.

It is the first options position most people put on, and the cap is the part they forget. The wheel bot in the workbench lives on this payoff. Return the list of profits rounded to 4 decimal places.

example 1

input

entry=100.0, strike=110.0, premium=2.5, expiry_prices=[90.0, 100.0, 105.0, 110.0]

output

[-7.5, 2.5, 7.5, 12.5]

example 2

input

entry=100.0, strike=110.0, premium=2.5, expiry_prices=[95.0, 110.0, 120.0, 140.0]

output

[-2.5, 12.5, 12.5, 12.5]

constraints

entry, strike, premium > 0
1 ≤ len(expiry_prices) ≤ 50

teacher · 2 hints · the first is free

↗ read the theory

the chapter this problem is cut from

▶ open in the workbench

run the same math on a real tape

●solution.py· utf-8 · spaces:4

def covered_call_pnl(entry: float, strike: float, premium: float, expiry_prices: list) -> list:
    """Profit per share at each expiry price, rounded to 4 dp."""
    out = []
    for px in expiry_prices:
        # TODO: above the strike the stock is called away — cap the stock leg at the strike
        out.append(round(px - entry + premium, 4))
    return out

ln 1, col 1tab indent · esc leave editor

python 3.13 · pyodide

+ 6 hidden on submit

input · keyword arguments to covered_call_pnl()

entry=100.0, strike=110.0, premium=2.5, expiry_prices=[90.0, 100.0, 105.0, 110.0]

expected

[-7.5, 2.5, 7.5, 12.5]

the judge calls covered_call_pnl() with exactly these inputs · outputs are compared to 6 decimal places

● standing bypython 3.13 in your browser · pyodide 0.28.3 · judged on the server to 6 dp⌘↵ run · ⌘⇧↵ submit

paper only · educational · not advice