Options Payoff Diagram implementation

Binding contract

This record describes what an executable surface must bind and validate. It does not claim that a public calculator, package, or production route is deployed.

Record owner

Guth Instruments

Lifecycle

verified-clean

Evidence ID

t6-071

Effect

Computation or source lookup only

Input and validation requirements

The extreme-magnitude vector produces Infinity from 1e308-(-1e308), and a plotting engine that accepts the input without validation can generate a nonfinite payoff curve. The short-leg premium convention is also hazardous if the UI does not explicitly distinguish premium received from premium paid.

Required corrections

No binding erratum is attached to this unique-name record. Implementers must still preserve the declared units, domain, and failure behavior.

Inspectable interface fixture

The sample below is evidence for interface and validation tests, not a production implementation.

{
  "inputs": {
    "position": "long call",
    "legs": [
      {
        "type": "call",
        "strike": 100,
        "premium": 7,
        "side": "long",
        "multiplier": 1
      }
    ],
    "underlying_price_domain": "S >= 0",
    "sampled_underlying_prices": [
      80,
      100,
      120
    ]
  },
  "expected_outputs": {
    "sampled_points": [
      {
        "S": 80,
        "profit_loss": -7
      },
      {
        "S": 100,
        "profit_loss": -7
      },
      {
        "S": 120,
        "profit_loss": 13
      }
    ],
    "breakeven_prices": [
      107
    ],
    "max_gain": "unbounded as S increases",
    "max_loss": -7,
    "curve_features": {
      "roots": [
        107
      ],
      "kinks": [
        {
          "S": 100,
          "profit_loss": -7
        }
      ],
      "asymptotes": [],
      "intersections": []
    }
  },
  "working": "For each price, P/L = max(S - 100, 0) - 7. S=80: max(80-100,0)-7 = max(-20,0)-7 = 0-7 = -7. S=100: max(100-100,0)-7 = 0-7 = -7. S=120: max(120-100,0)-7 = 20-7 = 13. Breakeven: max(S-100,0)-7=0; on the in-the-money branch, S-100=7, so S=107. For S <= 100 the loss is -7; for S > 100 profit increases without bound. The payoff kink is at S=100."
}

Other records

Sources and evidence

These pointers bind the page to evidence. They do not grant authority or collapse verification into deployment.

• VERIFIED_LEDGER.json
• evidence-tranche6/tranche6-results.json