An options simulation engine for an options trading game. The present
invention comprises a game engine for keeping track of game time and game
settings, an options market simulator for providing a real-world options
trading environment, and a portfolio manager engine for keeping track of a
player's portfolio. The options market simulator comprises a basic stock
price generator for moving stock prices, a news/rumor generator for moving
stock prices, and an options pricing generator for pricing options. The
portfolio manager comprises an available cash/minimum balance mechanism
for determining how much a player is charged for buying and/or selling
options and stocks, and for maintaining a player's positions, a risk
analysis mechanism for determining the amount of money a player can lose
for any given stock or option, a margin requirements mechanism for keeping
track of the minimum equity required in a player's account to support the
player's total investment position, a profit and loss mechanism for
determining a player's profit and loss throughout the game and on a weekly
basis, and a trading rules/limitations mechanism that prevents a player
from breaking a trading rule or exceeding a limitation during game play.
