Financial Analyst: A Comprehensive

Applied Guide to Quantitative Finance

in 2024: A Holistic Guide to: Python for
Finance, Algorithmic Options Trading,
Black Scholes, Stochastic Calculus &
More Van Der Post
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F I N A N C I A L A N A LY S T

Hayden Van Der Post

Reactive Publishing
Greed is Good

GORDON GEKKO ("MICHAEL DOUGLAS") ~ WALL STREET

1987
 CONTENTS

Title Page
Epigraph
Preface
Forward
Chapter 1: Deciphering Options
Chapter 2: Python Programming Fundamentals for Finance
Chapter 3: Comprehending the Black Scholes Model
Chapter 4: An In-Depth Exploration of the Greeks
Chapter 5: Analyzing Market Data with Python
Chapter 6: Implementation of the Black Scholes Formula in
Python
Chapter 7: Strategies for Option Trading
Chapter 8: Advanced Concepts in Trading and Python
Chapter 9: Practical Case Studies and Applications
Epilogue
Additional Resources
How to install python
Python Libraries for Finance
Key Python Programming Concepts
How to write a Python Program
Financial Analysis with Python
Variance Analysis
Trend Analysis
Horizontal and Vertical Analysis
Ratio Analysis
Cash Flow Analysis
Scenario and Sensitivity Analysis
Capital Budgeting
Break-even Analysis
Creating a Data Visualization Product in Finance
Data Visualization Guide
Algorithmic Trading Summary Guide
Financial Mathematics
Black-Scholes Model
The Greeks Formulas
Stochastic Calculus For Finance
Brownian Motion (Wiener Process)
Itô's Lemma
Stochastic Differential Equations (SDEs)
Geometric Brownian Motion (GBM)
Martingales
 PREFACE
In the ever-evolving landscape of financial markets, the
marriage of technology and finance has birthed a new era of
investment strategies and analytical methodologies.
"Financial Analyst: A Comprehensive Applied Guide to
Quantitative Finance in 2024" is a culmination of my journey
through the intricate world of financial analysis, with a
special focus on the pioneering fields of algorithmic trading,
options trading using the Black-Scholes model, stochastic
calculus, and the art of data visualization.

This book is designed not just as a textbook but as a bridge

connecting the theoretical underpinnings of quantitative
finance with the practical applications that are
revolutionizing the financial industry today. The year 2024
marks a significant point in this journey, where the fusion of
sophisticated analytical techniques with advanced
computational tools has become indispensable for financial
analysts.

At the heart of this guide is algorithmic trading with Python,

a discipline that has democratized access to complex
trading strategies once reserved for institutional traders.
Python, with its extensive libraries and community support,
serves as the perfect toolkit for developing, testing, and
deploying algorithmic trading strategies. Through hands-on
examples and real-world case studies, we delve deep into
the mechanics of creating algorithms that can navigate the
markets with precision and efficiency.
Options trading, with its inherent complexity and risk, is
demystified through the lens of the Black-Scholes model.
This segment is crafted to equip you with the knowledge to
price options accurately and develop strategies that can
enhance portfolio returns while managing risk. Stochastic
calculus, a cornerstone of modern financial theory, is
presented in an accessible manner, enabling you to grasp
the stochastic processes that model the randomness
inherent in financial markets.

Data visualization, an often-underappreciated aspect of

quantitative finance, receives its due spotlight. In today's
data-driven world, the ability to effectively communicate
complex data and insights is as critical as the analysis itself.
This book provides you with the tools and techniques to
create intuitive and powerful visualizations that can inform
decision-making and unveil patterns hidden within vast
datasets.

"Financial Analyst: A Comprehensive Applied Guide to

Quantitative Finance in 2024" is more than just a book; it's a
companion for the ambitious financial analyst looking to
navigate the complexities of the modern financial
landscape. Whether you're a seasoned professional seeking
to expand your toolkit or a budding analyst at the outset of
your career, this guide is tailored to empower you with the
knowledge, skills, and insights to thrive in the dynamic
world of quantitative finance.

As we stand on the precipice of what may be the most

exhilarating era of financial analysis, I invite you to join me
on this journey. Together, let's explore the frontiers of
quantitative finance, armed with Python, mathematical
rigor, and a relentless curiosity to uncover the secrets of the
financial markets.
Welcome to the future of finance.
 FORWARD
"Financial Analyst: A Comprehensive Applied Guide to
Quantitative Finance in 2024" is not only a testament to this
journey but also a beacon for those navigating the intricate
pathways of financial analysis. Beyond its core chapters that
delve deep into algorithmic trading, options pricing,
stochastic calculus, and data visualization, this guide
distinguishes itself with an extensive additional resources
section, meticulously curated to enrich your understanding
and mastery of key concepts.

This additional resources section is not merely an appendix;

it is a carefully crafted repository designed to complement
the main content, offering readers a holistic learning
experience. Whether you're grappling with the nuances of
the Black-Scholes model, exploring the depths of stochastic
calculus, or seeking to refine your algorithmic trading
strategies with Python, the resources provided extend your
learning journey beyond the conventional boundaries of a
book.

For each chapter, we have identified supplemental materials

that range from foundational texts to cutting-edge research
papers, online courses, interactive tools, and communities
of practice. These resources were selected with the
intention of providing guidance, alternative perspectives,
and practical insights to deepen your comprehension of
complex topics. They serve as a bridge between the
theoretical frameworks discussed within the pages of this
book and the real-world applications that drive innovation in
quantitative finance today.

The inclusion of these resources underscores our

commitment to not just educate but empower our readers.
We recognize that the field of quantitative finance is
continuously evolving, with new theories emerging and
technologies advancing at a rapid pace. As such, staying
abreast of these developments is crucial for any financial
analyst aspiring to excel in this field. The additional
resources section is designed to be your compass in this
endeavor, guiding you to further study, discussion, and
exploration.

Moreover, we encourage readers to engage with these

resources actively. Challenge yourself with practical
exercises, participate in forums and discussions, and apply
what you learn to real-world datasets. The true value of this
section lies in its ability to inspire you to question,
experiment, and innovate.

As you turn the pages of this guide and venture into its
additional resources, remember that the path to mastery in
quantitative finance is both a personal and professional
quest. It demands curiosity, dedication, and a willingness to
venture into uncharted territories. With "Financial Analyst: A
Comprehensive Applied Guide to Quantitative Finance in
2024" as your guide and the wealth of additional resources
at your disposal, you are well-equipped to embark on this
exciting journey.
 CHAPTER 1:
DECIPHERING OPTIONS

O
ptions trading is a canvas that presents a range of
opportunities for both experienced professionals and
ambitious beginners to mitigate risk, speculate, and
devise plans. At its essence, options trading involves buying
or selling the right, though not the obligation, to purchase or
sell an asset at a predetermined price within a specific
timeframe. This intricate financial instrument manifests in
two primary forms: call options and put options. A call
option bestows upon the holder the privilege to buy an
asset at a specified strike price before the option expires.
Conversely, a put option empowers its owner to sell the
asset at the strike price. The allure of options arises from
their adaptability. They can be as cautious or as speculative
as one's appetite for risk allows.

Investors may employ options to safeguard their portfolio

against market downturns, while traders might utilize them
to capitalize on market predictions. Options also serve as a
powerful tool for generating income through diverse
strategies, such as writing covered calls or constructing
intricate spreads that thrive on asset volatility or the
passing of time. The pricing of options is a graceful interplay
of various factors, including the underlying asset's current
price, the strike price, time remaining until expiration,
market volatility, and the risk-free interest rate. The
interaction of these elements engenders the option's
premium – the price one must pay to acquire the option. To
navigate the options market skillfully, traders must become
fluent in its distinct language and measurements.
Expressions like "in the money," "out of the money," and "at
the money" encapsulate the relationship between the
asset's price and the strike price. Meanwhile, "open interest"
and "volume" serve as indicators of the market's vitality and
trading activity.

Furthermore, the risk and reward profile of options is

asymmetrical. The maximum loss for a buyer is the
premium paid, while the profit potential can be significant,
particularly for a call option if the underlying asset's price
skyrockets. However, sellers of options assume greater risk;
they may collect the premium upfront, but their losses can
be substantial if the market moves unfavorably.
Understanding the multitude of factors that influence
options trading is akin to mastering a sophisticated strategic
game. It necessitates a fusion of theoretical knowledge,
practical aptitude, and an analytical mindset. As we delve
deeper into the mechanics of options trading, we shall
dissect these components, establishing a sturdy foundation
for the strategies and analyses that will ensue. In the
following sections, we will delve into the complexities of call
and put options, shed light on the crucial significance of
options pricing, and introduce the renowned Black Scholes
Model—an illuminating mathematical tool that navigates
traders through the uncertainties of the market.

Our journey will be based on practical experience, utilizing

the powerful libraries of Python, and will be enriched with
examples that bring the concepts to life. With each step,
readers will not only gain knowledge but also acquire the
necessary practical skills to apply these theories in the real
world of trading.

Decoding Call and Put Options: The Foundations of Options

Trading

Embarking on the exploration of call and put options, we

find ourselves at the very core of options trading. These two
fundamental instruments serve as the building blocks upon
which options strategies are constructed. A call option can
be likened to possessing a key to a treasure chest, with a
specified period of time to decide whether to unlock it. If the
treasure (the underlying asset) appreciates in value, the
holder of the key (the call option) stands to gain by
exercising the right to purchase at a previously set price,
selling it at the current higher price, and enjoying the
resulting profit. However, if the expected appreciation fails
to occur before the option expires, the key becomes
worthless and the holder's loss is limited to the premium
paid for the option.

```python
# Calculating Call Option Profit
return max(stock_price - strike_price, 0) - premium

# Example values
stock_price = 110 # Current stock price
strike_price = 100 # Strike price of the call option
premium = 5 # Premium paid for the call option

# Calculate profit
profit = call_option_profit(stock_price, strike_price,
premium)
print(f"The profit from the call option is: ${profit}")
```

On the other hand, a put option can be compared to an

insurance policy. It provides the policyholder with the
freedom to sell the underlying asset at the strike price,
serving as protection against a decline in the asset's value.
If the market price falls below the strike price, the put option
gains value, allowing the holder to sell the asset at a price
higher than the prevailing market rate. However, if the asset
maintains or increases in value, the put option expires
unused—similar to an unnecessary insurance policy—and
the holder incurs a loss equal to the premium paid for this
protection.

```python
# Calculating Put Option Profit
return max(strike_price - stock_price, 0) - premium

# Example values
stock_price = 90 # Current stock price
strike_price = 100 # Strike price of the put option
premium = 5 # Premium paid for the put option

# Calculate profit
profit = put_option_profit(stock_price, strike_price,
premium)
print(f"The profit from the put option is: ${profit}")
```
The inherent value of a call option is determined by the
extent to which the stock price surpasses the strike price.
Conversely, the intrinsic value of a put option is measured
by how much the strike price exceeds the stock price. In
both cases, if the option is "in the money," it possesses
intrinsic value.

If not, its value is purely extrinsic, reflecting the likelihood of

it becoming profitable before it expires. The premium itself
is not an arbitrary figure, but rather meticulously calculated
using models that consider factors such as the asset's
current price, the option's strike price, the remaining time
until expiration, the anticipated volatility of the asset, and
the prevailing risk-free interest rate. These calculations can
be readily implemented in Python, providing a hands-on
approach to grasping the dynamics of option pricing. As we
progress, we will break down these pricing models and
discover how the Greeks—dynamic measures of an option's
sensitivity to various market factors—can guide our trading
decisions. It is through these concepts that traders can
develop strategies ranging from simple to highly complex,
always maintaining a focus on risk management while
striving for profitability. Delving deeper into options trading,
we will uncover the strategic applications of these
instruments and the ways in which they can be utilized to
achieve various investment goals. With Python as our
analytical companion, we will unravel the mysteries of
options and shed light on the path to becoming adept
traders in this captivating field.

Revealing the Importance of Options Pricing

Options pricing is not simply a numerical exercise; it is the

foundation upon which the world of options trading is built.
It imparts the wisdom necessary to navigate the
unpredictable waters of market fluctuations, safeguarding
traders from uncertainty. In the world of options, the price
serves as a guide, directing traders towards informed
decisions. It encompasses a range of factors, each revealing
insights about the future of the underlying asset. The price
of an option reflects the collective sentiment and
expectations of the market, distilled into a single value
through sophisticated mathematical models. ```python
# Black-Scholes Model for Option Pricing
import math
from scipy.stats import norm

# S: current stock price

# K: strike price of the option
# T: time to expiration in years
# r: risk-free interest rate
# sigma: volatility of the stock

d1 = (math.

log(S / K) + (r + 0.5 * sigma2) * T) / (sigma * math.sqrt(T))

d2 = d1 - sigma * math.sqrt(T)

call_price = S * norm.cdf(d1) - K * math.exp(-r * T) *

norm.cdf(d2)
return call_price

# Example values
current_stock_price = 100
strike_price = 100
time_to_expiration = 1 # 1 year
risk_free_rate = 0.

05 # 5%
volatility = 0.2 # 20%

# Calculate call option price

call_option_price = black_scholes_call(current_stock_price,
strike_price, time_to_expiration, risk_free_rate, volatility)
print(f"The call option price is: ${call_option_price:.2f}")
```

Understanding this price allows traders to determine the fair

value of an option. It equips them with the knowledge to
identify overvalued or undervalued options, which could
indicate potential opportunities or risks. Grasping the
intricacies of options pricing is equivalent to mastering the
art of valuation itself, a crucial skill in all areas of finance.
Additionally, options pricing is a dynamic process,
influenced by the changing conditions of the market. The
remaining time until expiration, the volatility of the
underlying asset, and prevailing interest rates are among
the factors that shape the price of an option.

These variables are constantly changing, causing the price

to fluctuate like the tide responding to the lunar cycle. The
pricing models, like the writings of ancient scholars, are
complex and require a deep understanding to be applied
correctly. They are not flawless, but they provide a
foundation from which traders can make educated
assumptions about the value of an option. Python serves as
a powerful tool in this endeavor, simplifying the complex
algorithms into executable code that can quickly adapt to
market changes. The significance of options pricing extends
beyond the individual trader. It is a vital component of
market efficiency, contributing to the establishment of
liquidity and the smooth functioning of the options market.
It enables the creation of hedging strategies, where options
are used to manage risk, and it informs speculative
endeavors where traders aim to profit from volatility.

Let us, therefore, continue on this journey with the

understanding that comprehending options pricing is not
just about learning a formula; it is about unlocking an
essential skill that will serve as a guide in the vast universe
of options trading.

Demystifying the Black Scholes Model: The Essence of

Options Valuation

At the core of contemporary financial theory lies the Black

Scholes Model, a sophisticated framework that has
revolutionized the approach to pricing options. Conceived by
economists Fischer Black, Myron Scholes, and Robert Merton
in the early 1970s, this model provides a theoretical
estimate of the price of European-style options. The Black
Scholes Model is based on the assumption of a liquid market
where the option and its underlying asset can be
continuously traded. It assumes that prices of the
underlying asset follow a geometric Brownian motion,
characterized by constant volatility and a normal
distribution of returns. This stochastic process creates a
random walk that is the foundation of the model's
probabilistic approach to pricing.

```python
# Black-Scholes Model for Pricing European Call Options
import numpy as np
from scipy.
stats import norm

# S: current stock price

# K: strike price of the option
# T: time to expiration in years
# r: risk-free interest rate
# sigma: volatility of the underlying asset

# Calculate d1 and d2 parameters

d1 = (np.log(S / K) + (r + 0.5 * sigma2) * T) / (sigma *
np.sqrt(T))
d2 = d1 - sigma * np.sqrt(T)

# Calculate the price of the European call option

call_price = (S * norm.cdf(d1)) - (K * np.exp(-r * T) *
norm.

cdf(d2))
return call_price

# Example values for a European call option

current_stock_price = 50
strike_price = 55
time_to_expiration = 0.5 # 6 months
risk_free_rate = 0.01 # 1%
volatility = 0.25 # 25%

# Calculate the European call option price

european_call_price =
black_scholes_european_call(current_stock_price,
strike_price, time_to_expiration, risk_free_rate, volatility)
print(f"The European call option price is:
${european_call_price:.2f}")
```

The Black Scholes equation utilizes a risk-neutral valuation

approach, where the expected return of the underlying
asset does not directly impact the pricing formula. Instead,
the risk-free rate becomes the pivotal factor, suggesting
that the expected return on the asset should align with the
risk-free rate when adjusted for risk through hedging. Within
the essence of the Black Scholes Model, we encounter the
'Greeks', which are sensitivities related to derivatives of the
model.

These include Delta, Gamma, Theta, Vega, and Rho. Each

Greek elucidates how different financial variables influence
the option's price, providing traders with valuable insights
into risk management. The Black Scholes formula is
elegantly straightforward, yet its implications are profound.
It has facilitated the expansion of the options market by
establishing a shared language among market participants.
The model has become a cornerstone of financial education,
an essential tool in traders' arsenal, and a benchmark for
new pricing models that relax some of its assumptions. The
significance of the Black Scholes Model cannot be
overstated. It has the ability to transform the raw data of
the market into actionable knowledge.

Harnessing the Power of the Greeks: Navigating the Seas of

Options Trading

Understanding the Greeks is akin to a captain mastering the

winds and currents. These mathematical measures are
named after the Greek letters Delta, Gamma, Theta, Vega,
and Rho, and each plays a vital role in navigating the
turbulent waters of the markets. They provide traders with
profound insights into how various factors affect the prices
of options and, consequently, their trading strategies. Delta
(\(\Delta\)) serves as the rudder of the options ship,
indicating how much the price of an option is expected to
change for every one-point movement in the price of the
underlying asset. A Delta oscillating near 1 indicates that
the option's price will move almost in lockstep with the
stock, while a Delta nearing 0 suggests minimal
responsiveness to the stock's movements. Practically, Delta
not only provides guidance to traders in hedging but also in
evaluating the probability of an option ending up profitable.

```python
# Determining Delta for a European Call Option using the
Black-Scholes Model
d1 = (np.log(S / K) + (r + sigma2 / 2) * T) / (sigma *
np.sqrt(T))
delta = norm.cdf(d1)
return delta

# Implement the calculate_delta function using the previous

example's parameters
call_option_delta = calculate_delta(current_stock_price,
strike_price, time_to_expiration, risk_free_rate, volatility)
print(f"The Delta of the European call option is:
{call_option_delta:.2f}")
```

Gamma (\(\Gamma\)) illustrates the rate of change in Delta,

offering insight into the curvature of the option's price
trajectory. A high Gamma indicates that Delta is highly
receptive to changes in the underlying asset's price,
signaling that the option's price could undergo rapid shifts—
valuable knowledge for traders who need to adjust their
positions to maintain a delta-neutral portfolio. Vega (\(\nu\))
serves as the compass indicating the impact of volatility—a
slight change in volatility may cause significant fluctuations
in the option's price.

Vega reflects the option's sensitivity to shifts in the

underlying asset's volatility, aiding traders in
comprehending the risk and potential reward associated
with volatile market conditions. Theta (\(\Theta\)) embodies
the sands of time, representing the rate at which an option's
value diminishes as the expiration date approaches. Theta
starkly reminds us that options are assets prone to waste,
and their value diminishes with each passing day. Traders
must remain vigilant, as the incessant erosion of Theta can
erode potential profits. Rho (\(\rho\)) signifies the sensitivity
of an option's price to changes in the risk-free interest rate.
While often less consequential than the other Greeks, Rho
can become a vital consideration during periods of
fluctuating interest rates, particularly for long-term options.
These Greeks, individually and collectively, serve as an
intricate navigation system for traders.

They provide a dynamic framework to manage positions,

hedge risks, and exploit market inefficiencies. By integrating
these measures into trading decisions, one adopts a
quantitative advantage, shifting the tide in favor of those
who can expertly interpret and act upon the information the
Greeks provide. As we delve into the role of the Greeks in
trading, we will uncover their interactions with one another
and the broader market, shedding light on complex risk
profiles and enabling the creation of robust trading
strategies. The upcoming sections will elaborate on the
practical applications of the Greeks, from single options
trades to intricate portfolios, showcasing how they inform
decisions and guide actions in the pursuit of profitability.
Understanding the Greeks is not solely about mastering
equations and calculations—it encompasses developing an
intuition for the ebb and flow of options trading. It entails
acquiring the ability to fluently and confidently speak the
language of the markets.

Building a Solid Foundation: Fundamental Trading Strategies

Utilizing Options

When venturing into the world of options trading, it is crucial

to possess a repertoire of strategies, each possessing its
own merits and situational advantages. Fundamental
trading techniques utilizing options serve as the
fundamental principles upon which more intricate strategies
are built. These techniques function as the basis for
safeguarding one's investment portfolio and speculating on
future market movements. In this section, we will delve into
a selection of fundamental options techniques, clarifying
their functioning and identifying suitable circumstances for
their utilization. The Long Call, a strategy characterized by
its simplicity and optimism, entails purchasing a call option
with the expectation that the underlying asset's value will
significantly appreciate before the option expires. This
technique offers unlimited profit potential while minimizing
risk -- the maximum loss being the premium paid for the
option.

```
# Calculation of Payoff for Long Call Option
return max(0, S - K) - premium

# Example: Calculation of payoff for Long Call with a strike

price of $50 and premium of $5
stock_prices = np.

arange(30, 70, 1)
payoffs = np.array([long_call_payoff(S, 50, 5) for S in
stock_prices])

plt.plot(stock_prices, payoffs)
plt.title('Long Call Option Payoff')
plt.xlabel('Stock Price at Expiration')
plt.ylabel('Profit / Loss')
plt.grid(True)
plt.

show()
```

The Long Put is the inverse of the Long Call strategy,

suitable for those who anticipate a decline in the underlying
asset's price. By acquiring a put option, one obtains the
right to sell the asset at a predetermined strike price,
potentially profiting from a market downturn. The loss is
limited to the premium paid, while the potential gain can be
substantial, though capped at the strike price minus the
premium and the cost of the underlying asset declining to
zero. Covered Calls provide a means to generate income
from an existing stock position. By selling call options
against previously owned stock, one can collect the option
premiums. If the stock price remains below the strike price,
the options expire worthless, allowing the seller to retain the
premium as profit. Should the stock price surpass the strike
price, the stock may be called away, but this strategy is
commonly employed when a significant increase in the
underlying stock's price is not anticipated.
```python
# Calculation of Payoff for Covered Call
return S - stock_purchase_price + premium
return K - stock_purchase_price + premium

# Example: Calculation of payoff for Covered Call

stock_purchase_price = 45
call_strike_price = 50
call_premium = 3

stock_prices = np.arange(30, 70, 1)

payoffs = np.array([covered_call_payoff(S, call_strike_price,
call_premium, stock_purchase_price) for S in stock_prices])

plt.plot(stock_prices, payoffs)
plt.title('Covered Call Option Payoff')
plt.xlabel('Stock Price at Expiration')
plt.ylabel('Profit / Loss')
plt.

grid(True)
plt.show()
```

Protective Puts are employed to safeguard a stock position

against a decrease in value. By owning the underlying stock
and simultaneously purchasing a put option, one can
establish a floor for potential losses without limiting the
potential gains. This strategy functions akin to an insurance
policy, assuring that even in the worst-case scenario, the
loss cannot exceed a certain level. These elementary
strategies represent only a fraction of the options trading
landscape. Each strategy serves as a tool, effective when
utilized judiciously and in the appropriate market
environment. By comprehending the mechanics of these
strategies and their intended purposes, traders can embark
on navigating the options market with increased confidence.
Furthermore, these strategies form the basis for more
complex tactics that traders will encounter as they progress
in their journey. As we advance, we will analyze these
strategies in greater detail, employing the Greeks to
enhance decision-making and exploring how each can be
customized to align with one's risk tolerance and market
outlook.

Sailing the Trade Winds: Grasping Risk and Return in Options

Trading

The attraction of options trading lies in its versatility and the

uneven balance of risk and reward it offers. However, the
very characteristics that make options appealing also
necessitate a comprehensive understanding of risk. To
become a master of options trading, one must become
skilled at juggling the potential for profit with the likelihood
of loss. The concept of risk in options trading is
multifaceted, ranging from the basic risk of losing the
premium on an option to more complex risks associated
with certain trading strategies. To unravel these risks and
potentially exploit them, traders utilize various
measurements, often referred to as the Greeks.

While the Greeks aid in managing the risks, there are

inherent uncertainties that every options trader must
confront.

```python
# Calculation of the Risk-Reward Ratio
return abs(max_loss / max_gain)

# Example: Calculating the Risk-Reward Ratio for a Long

Call Option
call_premium = 5
max_loss = -call_premium # The maximum loss is the
premium paid
max_gain = np.inf # The maximum gain is theoretically
unlimited for a Long Call

rr_ratio = risk_reward_ratio(max_loss, max_gain)

print(f"The Risk-Reward Ratio for this Long Call Option is:
{rr_ratio}")
```

One of the primary risks is the erosion of time value in

options, known as Theta. As each day passes, the time
value of an option diminishes, resulting in a decrease in the
option's price if all other factors remain constant. This decay
accelerates as the option approaches its expiration date,
making time a crucial factor to consider, especially for
options buyers. Volatility, or Vega, is another critical risk
element. It measures how an option's price reacts to
changes in the volatility of the underlying asset.

High volatility can lead to larger swings in option prices,

which can be both advantageous and detrimental
depending on the position taken. It's a two-edged sword
that requires careful consideration and management.

```python
# Calculation of Volatility's Impact on Option Price
 return current_price + (vega * volatility_change)

# Example: Calculating the impact of a volatility increase on

an option price
current_option_price = 10
vega_of_option = 0.2
increase_in_volatility = 0.05 # 5% increase

new_option_price =
volatility_impact_on_price(current_option_price,
vega_of_option, increase_in_volatility)
print(f"The new option price after a 5% increase in volatility
is: ${new_option_price}")
```

Liquidity risk is another factor to consider. Options contracts

on less liquid underlying assets or those with wider bid-ask
spreads can be more challenging to trade without affecting
the price. This can create difficulties when entering or
exiting positions, potentially resulting in less-than-optimal
trade executions.

On the other hand, the potential for returns in options

trading is also significant and can be realized in various
market conditions. Directional strategies, such as the Long
Call or Long Put, allow traders to leverage their market
outlook with a defined risk. Non-directional strategies, such
as the iron condor, aim to profit from the absence of
significant price movement in the underlying asset. These
strategies can offer returns even in a stagnant market,
provided the asset's price remains within a specific range.
Beyond individual tactical risks, considerations at the
portfolio level also come into play. Diversification across
various options strategies can help moderate risk. For
example, the use of protective puts can safeguard an
existing stock portfolio, while income-generating strategies
like covered calls can enhance returns.

In the world of options trading, there exists a delicate

interplay between risk and return. The trader must act as
both choreographer and performer, skillfully constructing
positions while remaining adaptable to market changes. This
section has provided a glimpse into the dynamics of risk and
return that are fundamental to options trading. As we
progress, we will delve deeper into advanced techniques for
managing risk and optimizing returns, always maintaining a
vigilant focus on the equilibrium between the two.

The Historical Development of Options Markets

Tracing the lineage of options markets uncovers a

captivating narrative that stretches back to ancient times.
The genesis of modern options trading can be traced to the
tulip mania of the 17th century, where options were utilized
to secure the right to purchase tulips in the future. This
speculative fervor laid the foundation for the options
markets we are familiar with today.

However, the formalization of options trading occurred

much later. It wasn't until 1973 that the Chicago Board
Options Exchange (CBOE) was established, becoming the
first organized exchange to facilitate the trading of
standardized options contracts. The advent of the CBOE
marked a new era for financial markets, introducing an
environment that provided traders with greater
transparency and regulatory oversight for options trading.
The establishment of the CBOE coincided with the
introduction of the Black-Scholes model, a theoretical
framework for pricing options contracts that revolutionized
the financial industry. This model offered a systematic
approach to valuing options, taking into account factors
such as the underlying asset's price, the strike price, time to
expiration, volatility, and the risk-free interest rate.
```python
# Black-Scholes Formula for European Call Option
from scipy.stats import norm
import math

# S: spot price of the underlying asset

# K: strike price of the option
# T: time to expiration in years
# r: risk-free interest rate
# sigma: volatility of the underlying asset

d1 = (math.

log(S / K) + (r + 0.5 * sigma 2) * T) / (sigma * math.sqrt(T))

d2 = d1 - sigma * math.sqrt(T)

call_price = S * norm.cdf(d1) - K * math.exp(-r * T) *

norm.cdf(d2)
return call_price

# Example: Calculating the price of a European Call Option

S = 100 # Current price of the underlying asset
K = 100 # Strike price
T=1 # Time to expiration (1 year)
r = 0.

05 # Risk-free interest rate (5%)

sigma = 0.2 # Volatility (20%)

call_option_price = black_scholes_call(S, K, T, r, sigma)

print(f"The Black-Scholes price of the European Call Option
is: ${call_option_price:.2f}")
```

Following in the footsteps of the CBOE, other exchanges

emerged around the globe, such as the Philadelphia Stock
Exchange and the European Options Exchange, creating an
international framework for options trading. These
exchanges played a crucial role in fostering the liquidity and
variety of options available to traders, leading to innovation
and refinement in trading strategies. The stock market crash
of 1987 proved to be a watershed moment for options
markets. It underscored the importance of robust risk
management practices, as traders turned to options as a
means to hedge against market downturns. This event also
highlighted the significance of comprehending the
complexities of options and the variables that influence
their prices.

As technology progressed, electronic trading platforms

arose, leveling the playing field for accessing options
markets. These platforms facilitated quicker transactions,
superior pricing, and a wider range, enabling retail investors
to join forces with institutional traders. Today, options
markets are an essential component of the financial
ecosystem, offering a diverse array of instruments for
managing risk, generating income, and engaging in
speculation. The markets have adapted to cater to various
participants, from those seeking to hedge their positions to
those aiming to exploit arbitrage opportunities or speculate
on price movements. The historical development of options
markets showcases human creativity and the pursuit of
financial innovation. As we navigate the ever-changing
landscape of the financial world, the lessons from history
serve as a guiding light, reminding us of the market's
resilience and ability to adapt.

The Lexicon of Leverage: Options Trading Terminology

Venturing into the world of options trading without a firm

grasp of its specialized vocabulary is like traversing a maze
without a map. To trade effectively, one must become fluent
in the language of options. Here, we shall unravel the
essential terminology that forms the foundation of options
discourse. Option: A financial derivative that grants the
holder the right, but not the obligation, to purchase (call
option) or sell (put option) an underlying asset at a specified
price (strike price) before or on a given date (expiration
date). Call Option: A contract that affords the buyer the right
to buy the underlying asset at the strike price within a
designated timeframe. The buyer expects the asset's price
to rise. Put Option: Conversely, a put option gives the buyer
the right to sell the asset at the strike price within a
specified period.

This is typically utilized when anticipating a decline in the

asset's price. Strike Price (Exercise Price): The
predetermined price at which the option buyer can buy
(call) or sell (put) the underlying asset. Expiration Date: The
date when the option contract expires. After this point, the
option cannot be exercised and ceases to exist. Premium:
The amount paid by the buyer to the seller (writer) of the
option. This fee is for the granted right, regardless of
whether the option is exercised. Acquiring mastery of this
vocabulary is an essential step for any aspiring options
trader.
Each term encompasses a specific concept that assists
traders in analyzing opportunities and risks within the
options market. By combining these definitions with the
mathematical models used in pricing and risk assessment,
traders can develop precise strategies, relying on the
powerful computational capabilities of Python to unravel the
complexities inherent in each term. In the following
sections, we will continue to expand upon these
foundational terms, integrating them into broader strategies
and analyses that make options trading a formidable yet
nuanced domain within the financial world.

Navigating the Enigma: The Regulatory Framework of

Options Trading

Regulations serve as guardians, ensuring fair play and

preserving market integrity. Options trading, with its
intricate strategies and potential for substantial leverage,
operates within a web of regulations that are crucial to
comprehend for compliance and successful participation in
the markets. In the United States, the Securities and
Exchange Commission (SEC) and the Commodity Futures
Trading Commission (CFTC) stand at the forefront of
overseeing the options market. The SEC regulates options
traded on stock and index assets, while the CFTC supervises
options pertaining to commodities and futures.

Other jurisdictions have their own regulatory bodies, such as

the Financial Conduct Authority (FCA) in the United
Kingdom, which enforce their distinct sets of rules. Options
are primarily exchanged on regulated markets such as the
CBOE and ISE, which are overseen by regulatory agencies.
These markets offer a platform for standardizing options
contracts, increasing liquidity and establishing transparent
pricing mechanisms. The OCC acts as both the issuer and
guarantor of option contracts, adding a layer of security by
ensuring contract obligations are met. This role is essential
for maintaining trust in the options market and mitigating
counterparty risk. FINRA is a non-governmental organization
that oversees member brokerage firms and exchange
markets, protecting investors and ensuring fairness in the
US capital markets. Traders and firms must adhere to strict
rules governing trading activities, including maintaining
proper registrations, meeting reporting requirements, and
conducting transparent business.

Regulations like KYC and AML are vital for preventing

financial fraud and verifying client identities. Options trading
involves significant risks, so regulatory bodies require
brokers and platforms to provide comprehensive risk
disclosures to investors. These documents inform traders
about potential losses and the complexities of options
trading.

```python
# Example of an Options Trading Regulatory Compliance
Checklist

# Define a simple function to check regulatory compliance

for options trading
def check_compliance(trading_firm):
compliance_requirements = {
'provides_risk_disclosures_to_clients': True
}

for requirement, is_met in

compliance_requirements.items():
if not is_met:
 print(f"Compliance issue: {requirement} is not
met.")
return False

print("All compliance requirements are met.")

return True

trading_firm = {
'provides_risk_disclosures_to_clients': True
}

# Check if the trading firm meets all compliance

requirements
compliance_check = check_compliance(trading_firm)
```

This code snippet presents a hypothetical compliance

checklist for options trading within an automated system.

It is important to note that in reality, regulatory compliance

is complex and constantly evolving, often requiring
specialized legal expertise. Understanding the regulatory
framework goes beyond merely following the laws; it
involves recognizing the safeguards these regulations
provide in preserving market integrity and protecting
individual traders. As we delve deeper into options trading,
it is vital to keep these regulations in mind as they shape
the guidelines for crafting and executing strategies. Moving
forward, the interaction between regulatory frameworks and
trading strategies will become increasingly evident as we
explore the practicalities of incorporating compliance into
our trading methodologies.
 CHAPTER 2: PYTHON
PROGRAMMING
FUNDAMENTALS FOR
FINANCE

E
fficiently configuring the Python environment is crucial
for conducting financial analysis using Python. Setting
up this foundation ensures that the necessary tools and
libraries for options trading are readily available. The first
step in the process is to install Python itself. The latest
version of Python can be acquired from the official Python
website or through package managers like Homebrew for
macOS and apt for Linux. It is imperative to verify that
Python is installed correctly by executing the 'python --
version' command in the terminal. An Integrated
Development Environment (IDE) is a software suite that
combines the essential tools for software development. For
Python, well-known IDEs include PyCharm, Visual Studio
Code, and Jupyter Notebooks. Each offers distinct features
like code completion, debugging tools, and project
management. The choice of IDE often depends on personal
preference and the specific requirements of the project. In
Python, virtual environments serve as isolated systems
wherein packages and dependencies can be installed for a
specific project without affecting the global Python
installation.

Tools like venv and virtualenv assist in managing these

environments, which are especially valuable when working
on multiple projects with varying demands. Packages
enhance the functionality of Python and are crucial for
conducting options trading analysis. Package managers like
pip are utilized to install and manage these packages. For
financial applications, important packages include numpy
for numerical computing, pandas for data manipulation,
matplotlib and seaborn for data visualization, and scipy for
scientific computing. ```python
# Demonstration of virtual environment setup and package
installation

# Import the necessary module

import subprocess

# Create a new virtual environment called 'trading_env'

subprocess.run(["python", "-m", "venv", "trading_env"])

# Activate the virtual environment

# Note: Activation commands differ across operating
systems
subprocess.run(["trading_env\\Scripts\\activate.

bat"])
subprocess.run(["source", "trading_env/bin/activate"])

# Install packages utilizing pip

subprocess.run(["pip", "install", "numpy", "pandas",
"matplotlib", "seaborn", "scipy"])
print("Python environment setup completed with all required
packages installed.") ```
This script showcases the setup of a virtual environment
and the installation of essential packages for options trading
analysis. This automated setup guarantees that the trading
environment remains segregated and consistent, which is
especially advantageous for collaborative projects. With the
Python environment now established, we are ready to dive
into the specific syntax and constructs that make Python an
invaluable ally in financial analysis. Exploring the Lexicon:
Fundamentals of Python Syntax and Operations

As we venture through Python's terrain, it is crucial to grasp

its syntax—the rules that define the structure of the
language—as well as the essential operations on which
Python's capabilities are built.

Python's syntax is renowned for its readability and

simplicity. Code blocks are delineated by indentation instead
of braces, promoting a neat layout. - Variables and
arithmetic operations: Python does not require explicit
declaration of variables and uses the assignment operator
"=" to assign values. It can perform basic arithmetic
operations such as addition, subtraction, multiplication, and
division. The modulus operator returns the remainder of
division, while the exponent operator is used for power
calculations.

- Logical operations: Python's logical operators include 'and',

'or', and 'not'. These operators are essential for controlling
the flow of a program through conditional statements.
- Comparison operations: Python supports comparison
operations such as equal, not equal, greater than, less than,
greater than or equal to, and less than or equal to.

- Conditional statements: Conditional statements like 'if',

'elif', and 'else' are used to control the execution of code
based on boolean conditions.

- Loops: Python has 'for' and 'while' loops that enable the
execution of a block of code multiple times. 'for' loops are
often used with the 'range()' function, while 'while' loops
continue as long as a condition remains true.

- Lists: Python has ordered and mutable collections called

lists, which can hold various types of objects.

- Tuples: Similar to lists, tuples are ordered but immutable.

- Dictionaries: Python supports dictionaries, which are

collections of key-value pairs that are unordered,
changeable, and indexed.

- Sets: Python has sets, which are unordered collections of

unique elements.

```python
# Example of fundamental Python syntax and operations

# Variables and arithmetic operations

a = 10
b=5
sum_value = a + b
difference_value = a - b
product_value = a * b
quotient_value = a / b

# Logical and comparison operations

is_equal = (a == b)
not_equal = (a != b)
greater_than = (a > b)

# Control structures
if greater_than:
print("a is greater than b")
else:
print("a is less than b")
if is_equal:
print("a and b are equal")

# Loops
for i in range(5): # Iterates from 0 to 4
print(i)

counter = 5
while counter > 0:
print(counter)
counter -= 1

# Data structures
list_example = [1, 2, 3, 4, 5]
tuple_example = (1, 2, 3, 4, 5)
dict_example = {'one': 1, 'two': 2, 'three': 3}
set_example = {1, 2, 3, 4, 5}

print(sum_value, difference_value, product_value,

quotient_value, is_equal, not_equal, greater_than)
print(list_example, tuple_example, dict_example,
set_example)
```

This code snippet encompasses the fundamental aspects of

Python's syntax and operations, offering a peek into the
language's structure and use cases. By mastering these
basics, one can manipulate data, create algorithms, and
build a foundation for more intricate financial models. In the
subsequent sections, we will delve into Python's object-
oriented nature, which enables encapsulation of data and
functions into reusable components. This paradigm will be
invaluable as we develop adaptable financial models and
simulations to navigate the ever-changing landscape of
options trading. Revealing Structures and Paradigms:
Python's Object-Oriented Programming

In the world of software development, object-oriented

programming (OOP) serves as a core paradigm that not only
organizes code but also abstracts it through real-world
objects. Python, with its versatile nature, embraces OOP,
empowering developers to construct modular and scalable
financial applications.

- Classes: Python employs classes as templates for object

creation. A class encompasses the data for the object and
the methods to manipulate said data. - Objects: A particular
instance of a class that represents a specific example of the
concept described by the class. - Inheritance: A mechanism
through which one class can inherit characteristics and
methods from another, promoting the reuse of code. -
Encapsulation: The packaging of data with the methods that
manipulate that data. It limits direct access to some
components of an object, which is crucial for handling data
securely. - Polymorphism: The ability to present the same
interface for different underlying forms (data types).

A class is defined using the 'class' keyword, followed by the

name of the class and a colon. Inside, methods are defined
as functions, with the first parameter conventionally named
'self' to refer to the instance of the class. ```python
# Defining a basic class in Python

# A simple class that represents an options contract

self.type = type # Call or Put

self.strike = strike # Strike price
self.expiry = expiry # Expiration date

# Placeholder method to calculate option premium

# In real-world applications, this would involve
complex computations
return "Calculation of premium"

# Creating an object
call_option = Option('Call', 100, '2023-12-17')

# Accessing object attributes and methods

print(call_option.type, call_option.

strike, call_option.get_premium())
```
The example above introduces a basic 'Option' class with a
constructor method, `__init__`, to initialize the attributes of
the object. It also includes a placeholder method for
determining the premium of the option. This structure
serves as the basis for developing more advanced models
and methods. Inheritance enables the creation of a new
class that inherits the attributes and methods of an existing
class. This leads to a hierarchy of classes and the ability to
modify or extend the functionalities of the base classes.
```python
# Demonstrating inheritance in Python

# Inherits from Option class

# Method to calculate payoff at expiration
return max(spot_price - self.

strike, 0)
return max(self.strike - spot_price, 0)

european_call = EuropeanOption('Call', 100, '2023-12-17')

print(european_call.get_payoff(110)) # Outputs 10
```
The 'EuropeanOption' class inherits from 'Option' and
introduces a new method, 'get_payoff', which calculates the
payoff of a European option at expiration given the spot
price of the underlying asset. Through OOP principles,
financial programmers can construct intricate models that
mirror the complexities of financial instruments. Harnessing
Python's Arsenal: Libraries for Financial Analysis

Python's ecosystem offers a wealth of libraries specifically

designed to assist in financial analysis. These libraries are
the tools that, when used proficiently, can unlock insights
from data and facilitate the execution of complex financial
models. - NumPy: Serves as the core of numeric
computation in Python.

It provides support for arrays and matrices, alongside a

range of mathematical functions to perform operations on
these data structures. - pandas: A powerful tool for data
manipulation and analysis, pandas introduces DataFrame
and Series objects that are ideally suited for time-series
data inherent in finance. matplotlib: An plotting library that
enables the visualization of data through charts and graphs,
which plays a vital role in interpreting financial trends and
patterns.

SciPy: Expanding on NumPy, SciPy enhances functionality

with extra modules for optimization, linear algebra,
integration, and statistics.

scikit-learn: Though more versatile in its application, scikit-

learn is crucial for implementing machine learning models
that can make predictions about market movements,
identify trading signals, and more. Pandas is a fundamental
tool for financial analysts, providing an effortless way to
manipulate, analyze, and visualize financial data.

```python
import pandas as pd

# Extract historical stock data from a CSV file

df = pd.

read_csv('stock_data.csv', parse_dates=['Date'],
index_col='Date')

# Compute the moving average

df['Moving_Avg'] = df['Close'].rolling(window=20).mean()

# Show the initial rows of the DataFrame

print(df.head())
```

In the above code snippet, pandas is utilized to read stock

data, calculate a moving average (a commonly used
financial indicator), and display the result. Despite its
simplicity, pandas has immense power for dissecting and
interpreting financial data. Being able to visualize complex
datasets is invaluable.

matplotlib is the preferred choice for generating static,

interactive, and animated visualizations in Python.

```python
import matplotlib.pyplot as plt

# Assuming 'df' is a pandas DataFrame that contains the

stock data
df['Close'].plot(title='Stock Closing Prices')
plt.xlabel('Date')
plt.ylabel('Price (USD)')
plt.show()
```

Here, matplotlib is employed to plot the closing prices of a

stock from our DataFrame, 'df'.

This visual representation aids in identifying trends,

patterns, and anomalies in the financial data. While SciPy
enhances the computational capabilities needed for
Another random document with
no related content on Scribd:
 Cercopithecidae

[Inhalt]

1. Macacus maurus F. Cuv.

Tafel I und II

mas a.sen., Balg mit Schädel, Loka, c 1300 m am Pik von

Bonthain, Süd Celébes, 21. X 95 (Tafel I und II).
mas b.juv., Balg mit Schädel, Barabatuwa bei Pankadjene,
Süd Celébes, 30. VI 95.
mas ad.,
c. Haut mit Schädel, in Spiritus, Süd Celébes.
mas d.ad., Skelet, Gowa bei Makassar, Süd Celébes.
juv., Skelet,
e. Makassar, Süd Celébes.

Exemplar a ist, der Grösse und Färbung (Tafel I c. ⅓ n. Gr.), sowie

dem Schädel (Tafel II ¾ n. Gr.) nach, ein Greis. Bräunlich, Kopf
heller, Rücken dunkler (R i d g w a y III 1, vorn mehr III 3; R a d d e
29b, am Rücken und an den Extremitäten dunkler 1. Haare des
Nackens und Oberrückens sehr lang, bis 10 cm und darüber, stark
mit Weiss gemischt, Unterrücken mit nur wenig weissen Haaren, am
Gesässe weisslich, viel heller als das von mir Abh. Ber. 1896/7 Nr. 6
Tafel I, 5 abgebildete Exemplar von Tonkean, Hinter- und Innenseite
der Oberschenkel grau, Vorderhals und Oberbrust hellgrau. Die
oberen Extremitäten aussen bräunlich, ebenfalls stark mit Grau
melirt, Hand grau und weiss, Vorderarm innen weiss; am
Unterschenkel wenig Weiss, Hinterhand stark grau und weiss
behaart, Augenbrauen mit viel Weiss, Wangen, Bart, Kinn, Kehle
stark melirt. Im Ganzen liegt ein bräunliches Exemplar mit weisser
und grauer Zeichnung vor gegenüber dem erwähnten schwarzen,
mit Grau gezeichneten von Tonkean. — Die M a a s s e sind am
Balge nicht mit Sicherheit zu nehmen, da das Skelet fehlt: Vom
Vertex zum Anus c 520 mm, von der Lippe zum Anus (alle
Krümmungen mitgemessen) 720, Hinterhand 165.
S c h ä d e l m a a s s e : Grösste Länge 143 mm, Jochbogenbreite 92,
Breite am proc. zygom. os. front. 71.5, geringste Breite zwischen
den Augenhöhlen 6.5, Breite an den Alveolen der Caninen 35.6,
geringste Breite am Pterion 44.4, grösste Breite am Pterion 55.

Exemplar b ist durchweg bräunlich, an den Extremitäten zum Theil

heller, am Gesäss, an der Innenseite des Oberschenkels und an der
Kehle graubräunlich. Maasse am Balge nicht gut zu nehmen.
Hinterhand c 150 mm.

Exemplar c. Färbung wie b.

Exemplar d. Maasse: Grösste Länge des Schädels 131 mm,

Jochbogenbreite 87, Femur 196, Tibia 171, Humerus 169, Radius
175. 12 Caudalwirbel (Abh. Ber. 1896/7 Nr. 6 p. 3 habe ich
irrthümlich 9 Caudalwirbel statt 12 für das Tonkean-Exemplar, 7 statt
10 für das Parepare-Exemplar angegeben). [3]

Es ist nicht ohne Interesse durch den genauen Fundort von a zu

erfahren, dass dieser Affe auch in einer Höhe von 1300 m lebt.
E v e r e t t beobachtete ihn, wenn ich ihn recht verstehe, ebenda
zwischen 6000 und 7000 Fuss (NZ. III, 150 1896), und die Herren
S a r a s i n bemerken, dass er bis auf die höchsten Grate des
Berges, c 9800 Fuss, gehe, wo es schon empfindlich kalt sein kann.
Die starke und dicke Behaarung mag ihn genügend schützen, und
es bleibt zu konstatiren, ob so alte Exemplare aus der Ebene, wo die
Art auch lebt — denn S a r a s i n s erhielten sie in Makassar recht
häufig aus dem Gowaschen — einen ebenso dicken Pelz haben. Bis
jetzt sind mir nur jüngere Individuen aus der Ebene untergekommen,
vielleicht dass Ex. g des Leidener Museums (Cat. MPB. VI, 118 1876
und XI, 32 1892) alt genug wäre, um den Vergleich zu gestatten,
allein es ist ohne Fundort.

Das grosse alte Männchen vom Pik von Bonthain, das die Herren
S a r a s i n als seltenes Jagdstück erbeuteten, erweitert unsere
Kenntniss dieser immer noch ungenügend bekannten Art von
Celébes in, wenigstens für mich, unerwarteter Weise. Ich hatte das
grosse adulte Männchen von Tonkean, Nordost Celébes, das ich
Abh. Ber. 1896/7 Nr. 6 p. 3 beschrieb und Tafel I 5, II 1–2, III 1–2
abbildete, trotz seiner schwarzen Extremitäten (die auch das junge
Weibchen von da — Tafel I 4 — aufwies) für einen alten M. maurus
angesehen, wenn ich auch (S. 4) hervorhob, dass weiteres Material
nöthig sei, um klar zu erkennen, ob die graue Phase an Unterarm
und Unterschenkel auch übersprungen werden könne, und wenn ich
auch ferner hervorhob, dass adulte schwarzgliedrige Exemplare bis
jetzt überhaupt noch nicht bekannt geworden seien (S. 3). Ich nahm
in Folge dessen an, dass M. maurus über ganz Celébes mit
Ausschluss der nördlichen Halbinsel, wo Cynopithecus niger
(Desm.) und nigrescens (Temm.) hausen, vorkomme. Das grosse
alte Exemplar vom Pik von Bonthain aber zeigt nun, dass das,
wenigstens bezüglich der nordöstlichen Halbinsel, nicht zutrifft. Hier
lebt eine andere Art. Sie ist schlank und schwarz, die vom Süden
dagegen gedrungen und bräunlich, mit Grau an den Extremitäten.
Selbst ein sehr altes Individuum von Nordost Celébes mit weissen
Altershaaren würde nie so braun sein können wie das Bonthain-
Exemplar, während die Differenz in der Farbe des Gesässes und der
Parthien darunter vielleicht als Altersdifferenz angesehen werden
kann. Ebenso differiren die Schädel und die Bezahnung. Bei fast
gleicher Schädellänge: 143 gegen 144 (Tonkean), sind alle Maasse
kleiner bei dem älteren Bonthain-Exemplare (vgl. obige Maasse
gegen die l. c. Seite 3 gegebenen), die knöcherne Nasenöffnung ist
breiter, die fossa canina viel flacher, das os zygomaticum lange nicht
so weit ausladend, der ganze Schädel graziler, was neben weiteren
anderen Differenzen auch aus der Abbildung erhellt. Dem hohen
Alter entsprechend sind alle Schädelnähte geschlossen, die crista
sagittalis und occipitalis sehr stark entwickelt, die Zähne hochgradig
abgenutzt, aber viel graziler, die Länge der Zahnreihen kürzer: p 2
bis m 3 sup. 2 33.4 mm gegen 37.2 bei dem Tonkean-Exemplar. In
der Abbildung erscheint die norma facialis (Tafel II Fig. 1) kürzer als
bei dem Tonkean-Exemplare (l. c. Tafel II Fig. 1), was aus der
überhaupt anderen Schädelconfiguration resultirt, besonders aber
steigt das Schädeldach weniger an (siehe norma lateralis, Fig. 2 in
beiden Fällen), wodurch sich die norma facialis verkürzt 3. Die
grössere Schlankheit des Tonkean-Affen kommt deutlich in den
Maassen der Extremitätenknochen zum Ausdrucke gegenüber den
Maassen des vielleicht älteren Exemplares von Parepare, die ich l. c.
Seite 3 gab, und gegenüber denen des ziemlich gleichaltrigen Ex. d
(s. oben). Von dem alten Bonthain-Männchen liegen die Knochen
nicht vor.

Nach alledem ist eine Identificirung beider Formen ausgeschlossen,

und ich trenne daher die von Tonkean in Nordost Celébes ab als

Macacus tonkeanus n. sp.

Früher hatte ich mich dazu nicht berechtigt gefühlt, da M. maurus

sich als sehr variabel in der Färbung erwies, und mir ein notorisch
altes Exemplar gegenüber dem von Tonkean nicht vorlag, überhaupt
wohl nicht bekannt war. Durch weitere Ausbeute wird sich erst
feststellen lassen, wo sich diese beiden Arten gegeneinander
abgrenzen, eventuell ob sie ineinander übergehen. Aus Central
Celébes kennt man, wie ich (l. c. p. 2) bereits hervorhob, bis jetzt nur
Affenfellstücke an Mützen der Eingebornen, die aber die
Extremitäten gerade dazu nicht verwenden; man kann daran nur
constatiren, dass es Macacus-, und [4]nicht Cynopithecus-Felle sind.
Es ist daher auch nicht richtig, wenn A d r i a n i (TTLV. XL, 343 1898)
den Affen von Central Celébes Papio niger nennt 4.

Gewiss wird es noch lange dauern bis eine erschöpfende Kenntniss

der Macacus-Formen von Celébes vorhanden ist, wenn auch seit
W e b e r s Untersuchungen (Zool. Erg. I, 103 1890) Licht auf die bis
dahin herrschende Dunkelheit fiel.

[Inhalt]

2. Cynopithecus niger (Desm.)

mas a.
ad., Balg und Schädel, Lilang bei Kema, Minahassa,
Nord Celébes, 8. II 96.
mas b.
juv., Skelet, Tomohon, Minahassa, Nord Celébes,
17. X 94.

In Bezug auf die Verbreitung von C. niger über Batjan (l. c. p. 7)

möchte ich noch bemerken, dass der Umstand seines
Nichtvorkommens auf dem g a n z n a h e n Halmahéra, ein
genügender Beweis dafür sein dürfte, dass er nach Batjan vom
Menschen gebracht worden ist. Wenn P. L. S c l a t e r (Geogr. Mam.
1899, 228) es noch ganz neuerdings für „möglich“ hält, dass die Art
ebenso nach den Philippinen gekommen sei, so kann ich dem
gegenüber nur wiederholt betonen (s. auch Abh. Ber. 1896/7 Nr. 6 p.
8), dass sie sicher dort nicht zu Hause ist.
[Inhalt]

3. Cynopithecus niger nigrescens (Temm.)

mas a.
ad., Balg mit Schädel, Buol, Nord Celébes, VIII 94.
mas b.
ad., Skelet, zwischen Malibagu und Duluduo, Nord
Celébes.
mas ad.,
c. Schädel, Negeri lama, östlich von Gorontalo,
Nord Celébes.
fem. d.
juv., Schädel, Bone Thal bei Gorontalo, Nord
Celébes, c 500 m.

Ex. a ist ausgesprochen nigrescens (im Gegensatze zu niger) durch

die braune Färbung, besonders an den hinteren Extremitäten, sowie
durch die ungetheilten Gesässchwielen.

Ex. b–d. Hier erschliesse ich die Bestimmung nigrescens nur aus
dem Fundorte. Te m m i n c k (Coup-d’oeil III, 111 1849, s. auch
S c h l e g e l Cat. MPB. VII, 121 1876) hatte nigrescens von
Gorontalo, Tulabello und Tomini von niger aus der Minahassa
abgetrennt; die Fundorte dieser 3 Exemplare sind alle westlich von
Bolang Mongondo. Als ich kürzlich glaubte (Abh. Ber. 1896/7 Nr. 6 p.
7) auf die braunschwarze Färbung (nach Te m m i n c k ) besonders
auf den Schultern und dem Rücken, kein Gewicht legen zu müssen,
weil Exemplare der Minahassa dies auch mehr oder weniger zeigen,
hatte ich noch kein Fell vor Augen; Ex. a aber überzeugt mich, dass
die braune Färbung, besonders an den hinteren Extremitäten, so
ausgesprochen ist, dass sie gar nicht übersehen werden kann, und
ich muss es ausschliessen, dass damit ein individueller Charakter
vorliegt, ebensowenig wie in den ungetheilten Gesässchwielen; hier
handelt es sich gewiss um Charaktere, die an die Localität gebunden
sind, was weitere Exemplare zu bestätigen hätten. Ob die anderen
von Te m m i n c k angegebenen Unterschiede von niger: „face plus
comprimée et queue fort peu apparente“ stichhalten, kann ich
vorläufig nicht entscheiden. Ich muss meine Beobachtung an
lebenden Boliohuto Exemplaren im Walde, dass sie von unten
gräulich waren (l. c. p. 6), nun auch so deuten, dass diese
Farbenwirkung von ihrem bräunlichen Fell herrührte, um so mehr als
gerade die Unterseite der hinteren Extremitäten von Exemplar a
heller braun ist.

Vom Gorontaloschen bis Tomini ist also nur niger nigrescens

bekannt, von der Minahassa niger. Welche Form in Bolang
Mongondo lebt, muss noch constatirt werden, ebenso ob C.
nigrescens oder Macacus, resp. welche Art Macacus, zwischen
Tomini und Parigi vorkommt (bezüglich der Localitäten verweise ich
auf Karte II der „Birds of Celebes“ 1898).

1 Die Deutsche Zoologische Gesellschaft empfahl (Verh. 1894, 103) zur

Farbenbestimmung S a c c a r d o s Chromotaxia, allein dessen 50 Töne
genügen zu einer auch nur etwas feineren Bestimmung nicht, während
R i d g w a y s (Nomenclature of colors 1886) 186 Töne viel weiter führen;
vollständig dienen kann jedoch nur R a d d e s Farbenscala mit ihren c. 900 Tönen,
die aber ihres Preises wegen (60 M) keine grössere Verbreitung gefunden hat,
während R i d g w a y in Vieler Hände ist, so dass es einen Nutzen haben kann, ihn
zu citiren. Es wäre wünschenswerth, dass man von den noch allgemein üblichen
vagen Farbenbezeichnungen, die eine Verständigung erschweren, abginge. ↑
2 H e n s e l sche Bezeichnung. ↑
3 Der Unterkiefer hat links einen überzähligen Backzahn, m 4, und von p 2 ist nur
noch ein kleiner Rest vorhanden, die Alveole zum grössten Theile
verwachsen. ↑
4 A d r i a n i erwähnt daselbst (p. 344) u. a., dass die To Radja fest glauben, die
Affen seien Menschen. ↑
[Inhalt]
 Tarsiidae

[Inhalt]

4. Tarsius fuscus Fisch.-Waldh.

Tafel III, Fig. 1–2

mares,
a, b. Bälge mit Schädel, Tomohon, Minahassa, Nord
Celébes, 26. V und 12. VI 94.
mas, c.
Skelet, Tomohon, V 94.
8 Exemplare
d–l. in Spiritus aus der Minahassa, IV 94, und
Tomohon, II und IV 94.

[5]

Je nach dem Alter verschieden gefärbt, jüngere gelber, ältere grauer.

Das kleine Exemplar oben links auf Tafel II Fig. 2 stellt das jüngere
Stadium in c ⅔ nat. Grösse dar. Das andere kleine, Fig. 3, ist T.
sangirensis von Siao in c ½ nat. Grösse. Ich erwähnte schon früher
(Abh. Ber. 1896/7 Nr. 6 p. 8), dass es keine genügende Abbildung
von T. fuscus gäbe, besonders da er früher meist mit T. spectrum
zusammengeworfen worden ist, welche letztere Art vielleicht in
mehrere Rassen zerfällt; dies zu beurtheilen genügt das vorhandene
Material von den verschiedenen Fundorten noch nicht.

O. T h o m a s (TZS. XIV, 381 1898) monirt, dass ich die genaueren

Unterschiede zwischen T. sangirensis und T. philippensis nicht
angegeben habe, während ich die zwischen fuscus und philippensis
wohl aufführe; allein da sangirensis sich fuscus, und nicht
philippensis anschliesst, so wäre es überflüssig gewesen, diese
Unterschiede nochmals ausführlich zu wiederholen. Auch meint er,
dass ich die Tarsen von philippensis als „vollkommen nackt“
bezeichne, übersieht aber, dass ich sie (Abh. Ber. 1896/7 Nr. 6 p. 9
Zeile 7) „so gut wie nackt“ und (Zeile 27) „fast nackt“ nenne, also
genau so wie er sie bezeichnet: „tarsis fere nudis“.

Das Thier spielt eine Hauptrolle in den Erzählungen der Eingebornen

von Central Celébes, die die Baree-Sprache reden (A d r i a n i :
Étude sur la litt. des To Radja, TTLV. XL, 342–53 1898). Es heisst da
nggasi oder tangkasi (Minahassa: tangkasi, Sangi: tenggahĕ, Dajak
ngadju, Bórneo: ingkir).
[Inhalt]
Chiroptera
Megachiroptera
 Pteropidae

[Inhalt]

5. Pteropus wallacei Gr.

Tafel IV, Fig. 1

Bälge,
a–c. 2 mares, 1 fem., Tomohon, Minahassa, Nord
Celébes, XI 94 (94, 89, 89 mm) 1.
mas,d.
in Spiritus, Tomohon, 6. IV 94 (87 mm).

Nord und Süd Celébes: Amurang (Mus. Leid.), Lotta, Masarang 3500
Fuss hoch (Mus. Dresd.), Tomohon (Sarasins), Makassar (Brit. Mus.).

H i c k s o n (Nat. N. Cel. 1889, 85) glaubt die Art auch auf der kleinen
Insel Talisse im Norden von Celébes gesehen zu haben.

[Inhalt]

6. Pteropus alecto Temm.

mas,a. Balg, Buol, Nord Celébes, VIII 94 (155 mm).

mas,b. Balg, Bonthain, Süd Celébes, 4. X 95 (160 mm).
fem.,c.Balg, Sokoija, Matanna See, Südost Central Celébes,
6. III 96 (115 mm).
fem.,d.in Spiritus, Tomohon, Minahassa, Nord Celébes, IV 94
(143 mm).
mas,e. in Spiritus, Umgegend von Makassar, Süd Celébes
(170 mm).
[6]

Diese Art, die die Herren S a r a s i n von Nord, Central und Süd
Celébes mitbrachten, soll von Celébes nach Osten bis Neu Guinea
vorkommen. Wie weit sie nach Westen geht, ist noch unsicher; bis jetzt
ist sie westlich von Celébes nur von Bawean, zwischen Java und
Bórneo, genannt. Te m m i n c k beschrieb sie nach einem Exemplar
aus der Minahassa (Mon. Mam. II, 76 1835–41), dieses Exemplar fehlt
aber in J e n t i n k s Catalog des Leidner Museums (XII, 147–8 1888);
es war, der Beschreibung nach, sehr dunkel gefärbt und ebenso sind
die 5 Exemplare der Herren S a r a s i n und die 3 von Celébes im
Dresdner Museum, die aus der Minahassa, Gorontalo und Makassar
stammen. Es fragt sich, ob, bei genügend grossem Materiale von allen
Fundorten, nicht Localrassen zu unterscheiden sein werden. Keinenfalls
genügt D o b s o n s Diagnose von alecto (Cat. Chir. Brit. Mus. 1878,
56).

[Inhalt]

7. Pteropus hypomelanus Temm.

Bälge,
a, b. mas, fem., Makassar, Süd Celébes, IX 95 (123, 124
mm).
4 c–e
fem.,
1. in Spiritus, Makassar, VIII, IX 95 (120, 128, 125, 100

mm).
mares,
f–h. in Spiritus, Insel Bonerate, im Süden von Celébes,
30. XII 94 (115, 118, 113 mm).

Eine über den ganzen Ostindischen Archipel verbreitete Art. Im

Dresdner Museum ist sie auch von Sulu und Talaut vertreten. Ob nicht
Localrassen zu unterscheiden sein werden innerhalb des grossen
Verbreitungsbezirkes der Art, kann nur an der Hand eines grossen
Materiales von überall her beurtheilt werden.

[Inhalt]

8. Pteropus mackloti Temm.

(Pteropus celebensis Schl.)

Balg,a.Tomohon, Minahassa, Nord Celébes, III 94 (127 mm).

fem.,b.in Spiritus, Tomohon (133 mm).

Ich folge J e n t i n k (Webers Zool. Erg. I, 126 1891), der die

Berechtigung von Pt. celebensis Schl. von Celébes als Art oder
Unterart, auf Grund des ihm vorliegenden Materiales von Nord, Central
und Süd Celébes, sowie von Sula, Flores und Timor, nicht anerkannte,
ohne aber dass ich ein gegründetes eigenes Urtheil darüber hätte. Die
Art ist auch von Batjan registrirt und dürfte sich wohl noch anderswo
finden. Das Dresdner Museum besitzt sie ausserdem von der Insel
Saleyer im Süden von Celébes.

[Inhalt]

9. Xantharpyia 2 minor (Dobs.)

D 1873
o b s o n J. As. Soc. Beng. XLII pt. II 203 pl. XIV, 9 (Ohr),
Java, Cynonycteris minor
id.1876
Mon. As. Chir. 32 (Ohr abgeb.), Java, Cynonycteris minor
 id.1878
Cat. Chir. Br. M. 73, Java, Cynonycteris minor
Hickson
1889 Nat. N. Cel. 84, Talisse, Cynonycteris minor.
fem.,a.in Spiritus, Tomohon, Minahassa, Nord Celébes III 94
(74 mm).
fem.,
b–d.in Spiritus, Minahassa (72, 67, 67 mm).

Während sonst Xantharpyia amplexicaudata (Geoffr.) mit weiter

Verbreitung über Südasien bis zu den Philippinen und Aru auch von
Celébes registrirt ist (z. B. D o b s o n Cat. Chir. Br. M. 1878, 73,
J e n t i n k Cat. MPB. 1887 IX, 263 und 1888 XII, 151) — das
Originalexemplar kam nach G e o f f r o y aus Timor —, war H i c k s o n
der erste und einzige, der X. minor von der kleinen Insel Talisse im
Norden von Celébes aufführte, und zwar als „very common“. Die von
den Herren S a r a s i n in Nord Celébes gesammelten vier Exemplare
können ihrer geringen Grösse wegen nicht zu amplexicaudata gestellt
werden, und auch desshalb nicht, weil der kleine pm 1 sup. zwischen c
und pm 2 eng eingekeilt ist, statt durch Zwischenräume getrennt
(D o b s o n l. c.). Eine Revision der in Sammlungen vorhandenen
Exemplare von amplexicaudata ist daher angezeigt, zumal alle, die das
Dresdner Museum von Nord Celébes und den Sangi Inseln besitzt, im
Ganzen 35, zu minor gehören, welche Art D o b s o n nach e i n e m
Weibchen von Java beschrieb, von wo sie aber sonst nicht wieder
registrirt worden zu sein scheint. Hingegen hat J e n t i n k (NLM. V, 173
1883) Xantharpyia brachyotis (Dobs.) von Amurang, Minahassa, Nord
Celébes, aufgeführt. [7]Diese Art wurde von D o b s o n von Neu Irland
beschrieben (PZS. 1877, 116 und Cat. 1878, 74) und ist später von
Shortland und Fauro (Salomo Inseln) und von Duke of York
nachgewiesen worden (PZS. 1887, 323 und 1888, 483 und Cat. MPB.
XII, 151 1888). J e n t i n k sagt, dass die zwei Exemplare von Celébes
„in allen Punkten“ mit D o b s o n s Beschreibung übereinstimmen. Die
Unterschiede zwischen X. minor und brachyotis bestehen nach
D o b s o n bei letzterer in viel kürzeren Ohren, längerer Schnauze und
darin, dass pm 1 sup. nur bei jungen Exemplaren vorhanden ist;
D o b s o n erwähnt noch, dass die Schulterdrüse der Männchen durch
dicke gelbe Haarbüschel, wie bei Pteropus, verdeckt seien. Letzteres
zeigen auch die Exemplare von minor von Nord Celébes und den Sangi
Inseln, und zwar nicht nur die alten Männchen, sondern auch die alten
Weibchen; die Haare sind zum Theile lebhaft rostroth.

Aus alle dem dürfte hervorgehen, dass unsere Kenntniss dieser Formen
noch sehr ungenügend ist. Einerseits wäre zu untersuchen, ob X. minor
(von Java und Celébes) nicht identisch ist mit X. brachyotis (vom
Bismarck Archipel und Celébes), oder ob und eventuell wie sich beide
Formen subspecifisch von einander abgrenzen, und andrerseits, wie
sich diese beiden zu X. amplexicaudata verhalten, sowohl artlich, als
auch geographisch. Dazu aber ist ein weit umfangreicheres Material
von den verschiedensten Fundorten nöthig als bis jetzt die besten
Museen enthalten.

[Inhalt]

10. Cynopterus latidens Dobs.

fem.,a.in Spiritus, Tomohon, Minahassa, Nord Celébes, 11. IV

94 (70 mm).
fem.,
b–d.in Spiritus, Minahassa (76, 71, 72 mm).

Diese Art wurde von D o b s o n nach einem Weibchen von der Insel
Morotai bei Halmahéra beschrieben (Cat. Chir. 1878, 86 pl. V, 3,
Zähne), allein schon J e n t i n k (Cat. MPB. XII, 155 1888) führte ein
Männchen von „Menado“ (Celébes) auf, von v. F a b e r gesammelt, das
allerdings in dem Verzeichnisse der F a b e r schen Sammlung (NLM. V,
173 1883) nicht vorkommt (diese Sammlung stammte von Amurang,
siehe p. 170, nicht von Manado). Die 4 von den Herren S a r a s i n aus
Nord Celébes gebrachten Exemplare stimmen nur in sofern nicht mit
D o b s o n s Beschreibung überein, als der Kopf vor und über den
Augen nicht fast schwarz, sondern mit dem Hinterkopfe gleich gefärbt
ist; da alle 4 aber in der Kopffarbe überhaupt etwas untereinander
differiren, indem einige heller sind als andere, und D o b s o n nur e i n
Exemplar von Morotai vorlag, so lässt sich nicht beurtheilen, ob der
hellere Vorderkopf der Celébes-Exemplare ein constanter Charakter ist;
die Kopffarbe mancher Flederhunde variirt bedeutend, und das könnte
daher bei Cynopterus auch statthaben. Keinenfalls fühle ich mich
vorläufig berechtigt, die Celébesform desshalb subspecifisch
abzutrennen; erst weiteres Material wird darüber entscheiden können.

Es ist das Material fast aller Flederhunde in den Museen noch viel zu
unzulänglich, um bei weiter verbreiteten Arten Localrassen mit
Sicherheit unterscheiden zu können; diese Erkenntniss ist der Zukunft
vorbehalten. Wenn wir bei Arten mit grösserem Verbreitungsbezirk oft
stillschweigend annehmen, dass sie fortdauernd von Insel zu Insel
fliegen, so ist dies doch keineswegs bewiesen. Bei der Nähe von Nord-
Celébes und Morotai könnte man a priori ja vielleicht geneigt sein, ein
Überfliegen des Meeres für möglich zu halten; sieht man doch von der
Höhe des Klabat unter Umständen den Vulkan Ternate (M e y e r &
W i g l e s w o r t h : Birds of Celebes I Intr. 52 1898). So kommt z. B.
Pteropus mackloti in Nord Celébes und Batjan vor. Allein nicht jede Art
muss infolge von Isolirung abändern. Auf der anderen Seite sind
Pteropus personatus von Ternate und Pt. wallacei von Nord Celébes
zwar nahe verwandt, aber verschieden, ein Beweis, dass der
Meeresarm sehr wohl auch Fledermäuse trennen kann, so gut wie
Vögel ein selbst viel schmälerer (l. c. 125). Ausnahmsweise wird die
See überflogen, nach der Isolirung aber ist die Abänderung vor sich
gegangen, und die jetzige Constanz der Formen beweist eben, dass ein
weiteres regelmässiges Überfliegen nicht statt findet.

[Inhalt]
Anmerkung

Cynopterus brachyotis (S. Müll.)

ist noch nicht von Celébes registrirt, und wenn auch in Sammlungen
wohl vorhanden, doch mit C. marginatus (Geoffr.) verwechselt worden.
Das Dresdner Museum erhielt sie in den J. 1877 und 1894 aus der
Minahassa, [8]sowie 1893 von Sangi und 1897 von Talaut, im Ganzen
13 Exemplare. J e n t i n k wies in einem lehrreichen Artikel (NLM. XIII,
201 1891) diese von Bórneo, den Andamanen und Nepal bekannte,
aber von D o b s o n in seinem Catalog (1878) vergessene Art von Java
und Sumátra nach; von Sumátra und „Indien“ ist sie auch im Dresdner
Museum. Die folgende Synonymie giebt in Kürze ihre Geschichte:

S 1839
a l . M ü l l e r Tijdschr. Natuur. Gesch. en Phys. V, 146
Pachysoma brachyotis (Bórneo)
1835–1841
Te m m i n c k Mon. Mam. II, 362 Pachysoma brachyotum
(Bórneo)
J .1870
E . G r a y Cat. Monkeys etc. 123 Cynopterus
marginatus var. brachyotis (Bórneo)
D 1873
o b s o n J . As. Soc. Beng. XLI pt. II, 201 pl. XIV, 5 (Ohr)
C. m. var. andamanensis (Andamanen)
id.1876
Mon. As. Chir. 26 Cynopterus brachyotus subsp., Ohr
abgeb. („Andaman Island“, Bórneo)
id.1878
Cat. Chir. Br. Mus. vacat!
S 1887
c u l l y J . As. Soc. Beng. LVI pt. II, 239 Cynopterus
brachyotus (Nepal)
B 1888
l a n f o r d Fauna Br. Ind. Mam. 264 Cynopterus
brachyotus (Andamanen, Bórneo, Nepal)
J e1888
n t i n k Cat. MPB. XII, 154 Cynopterus brachyotis
(Bórneo)
id.1891
NLM. XIII, 202 Cynopterus brachyotis (Bórneo, Java,
Sumátra).