Modeling of a box spread using Python

Box Spread

Combination of a bull spread made of call options and a bear spread made of put options.
Creating a bull spread involves the following:
- Buying a call option with a strike price of K1
- Selling a call option with a strike price of K2
- Buying a put option with a strike price of K2
- Selling a put option with a strike price of K1
Box spread is a delta neutral strategy.
The payoff the box spread is always K2-K1.

# Python example code that models option strategy - Box Spread

K1 = 100

K2 = 150

#K3 = 100

#K4 = 150

stockPrice = 130

i = 0

while i < 5:

stockPrice = stockPrice + 10

payoff = 0

if (stockPrice <= K1):

payoff = K2-K1;

elif (stockPrice > K1 and stockPrice < K2):

payoff = K2 - K1;

elif (stockPrice >= K2):

payoff = K2-K1;

else:

print("Invalid");

print("Stock price:%2.2f"%stockPrice);

print("Payoff from the box spread:%2.2f"%payoff);

print("-")

i = i + 1;

stockPrice = 130

i = 0;

while i <= 5:

stockPrice = stockPrice - 10

payoff = 0

if (stockPrice <= K1):

payoff = K2-K1;

elif (stockPrice > K1 and stockPrice < K2):

payoff = K2 - K1;

elif (stockPrice >= K2):

payoff = K2-K1;

else:

print("Invalid");

print("Stock price:%2.2f"%stockPrice);

print("Payoff from the box spread:%2.2f"%payoff);

print("-")

i = i + 1;