I just started learning doing financial analytics with python today. I ran into a block of code and it requires importing numpy and matplotlib to run the codes and generate a graph(not sure if it really can).
The codes are like this:
import numpy as np
import matplotlib as mpl
import matplotlib.pyplot as plt
mpl.rcParams['font.family'] = 'serif'
K = 8000
S = np.linspace(7000,9000,100)
h = np.maximum(S-K, 0)
plt.figure()
plt.plot(S, h, lw=2.5)
plt.xlabel('index level $S-t$ at maturity')
plt.ylabel("inner value of European call option")
plt.grid(True)
I installed both numpy and matplotlib but after I tried running the codes nothing came out.
I really don't know what went wrong. This is my first time using numpy and matplotlib and I have not idea how to solve this problem.
Please help!