Option Pricing with R

This repository contains the source files for Option Pricing with R, a Quarto book by Dr. Martin Lozano. The book introduces core option-pricing ideas through reproducible R code, numerical examples, and graphics.

Published site: https://mlozanoqf.github.io/tutorial_if/

Scope

The current version focuses on:

• Option payoffs and profit diagrams
• Option properties and put-call parity
• Binomial valuation
• Risk-neutral reasoning
• Black-Scholes intuition
• Wiener processes and their role in continuous-time models
• Foundations for future extensions, including Greeks

Book Structure

• index.qmd: preface and publication metadata
• 01-payoff-functions.qmd: payoff functions
• 02-options-properties.qmd: option properties and valuation relationships
• 03-wiener-processes.qmd: Wiener processes
• references.qmd: references

The book configuration lives in _quarto.yml.

Repository Layout

• R/: helper scripts used during rendering
• _freeze/: cached execution results used by Quarto's freeze: auto
• _book/: generated HTML output created by quarto render
• .github/workflows/publish.yml: GitHub Actions workflow for rendering and deploying the book to GitHub Pages
• styles.css and *.html partials: custom navigation, layout, and page behavior
• references.bib: bibliography

Render Locally

Install Quarto and R, then render the book from the repository root:

quarto render

For interactive local preview:

quarto preview

The GitHub Actions workflow installs the R packages needed for deployment. For local rendering, the main package set is:

• dplyr
• ggplot2
• kableExtra
• knitr
• plotly
• rmarkdown
• tidyr
• vembedr
• xfun

Publication

Pushing to main triggers the GitHub Actions workflow. The workflow renders the Quarto book and deploys the _book artifact to GitHub Pages.

Maintenance Notes

• Edit the source .qmd files, _quarto.yml, styles.css, or the HTML partials.
• Treat _book/ as generated output.
• Because freeze: auto is enabled, Quarto reuses cached execution results when source chunks have not changed.
• After removing or renaming chapters, check _quarto.yml, sidebar-chapter-sections.html, _freeze/, and the rendered _book/ output for stale references.

License

This project is licensed under the GNU General Public License v3.0. See LICENCE.