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I have been working on the following code but i am repeatedly getting the error 'can't multiply sequence by non-int of type 'numpy.float64'. I cannot understand where the problem arises and how to rectify it. Any help is highly appreciated.

import random
import numpy as np
import scipy.stats as si
import sympy as sy
#N-Number of time steps
r=0.01
S0=1.00
Y0=0.04
N=10000.00
T=1.00
k=0.00
mu=0.20
K=2.00
sigma=0.04
total=0.00
b=5.00
a=-2.00
S=S0*np.exp((mu-0.5*(sigma**2))*T + sigma*random.gauss(0,1)*np.sqrt(T))
while k<N:
   A=np.exp((-0.5)*((sigma**2)*T)*((k*np.pi*S)**2)*((1/(b-a))**2))*np.cos(((k*np.pi*S)/(b-a))*[np.log(S0/K)+(mu-0.5*(sigma**2))*T] -((k*a*np.pi)/(b-a)))
   B1=np.cos((k*np.pi*b)/(b-a))+((k*np.pi)/(b-a))*np.sin((k*np.pi*b)/(b-a))
   B2=np.sin((k*np.pi*b)/(b-a))-((k*np.pi)/(b-a))*np.cos((k*np.pi*b)/(b-a))
   B=np.cos((k*np.pi*a)/(b-a))*(((np.exp)**b)*B1-1)+np.sin((k*np.pi*a)/(b-a))*(((np.exp)**b)*B2 +((k*np.pi)/(b-a)))
   chi=(1/(1+((k*np.pi)/(b-a))**2))*B
   psi=((b-a)/(k*np.pi))*np.sin((k*np.pi*a)/(b-a))
   value=(A*2*K*(chi-psi))/(b-a)
   total=total+value
   k=k+1
call=(np.exp(-r*T)*total)/N
print("The value of the call option is:", call)

Output:

TypeError                                 Traceback (most recent call last)
<ipython-input-1-86bcd7f2cc6d> in <module>
     18 S=S0*np.exp((mu-0.5*(sigma**2))*T + sigma*random.gauss(0,1)*np.sqrt(T))
     19 while k<N:
---> 20    A=np.exp((-0.5)*((sigma**2)*T)*((k*np.pi*S)**2)*((1/(b-a))**2))*np.cos(((k*np.pi*S)/(b-a))*[np.log(S0/K)+(mu-0.5*(sigma**2))*T] -((k*a*np.pi)/(b-a)))
     21    B1=np.cos((k*np.pi*b)/(b-a))+((k*np.pi)/(b-a))*np.sin((k*np.pi*b)/(b-a))
     22    B2=np.sin((k*np.pi*b)/(b-a))-((k*np.pi)/(b-a))*np.cos((k*np.pi*b)/(b-a))

TypeError: can't multiply sequence by non-int of type 'numpy.float64'
Purba Banerjee
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    Try to break this one un-readable line to sub-calulcations. This line has many multiplications so it's hard to say... Read about [How to debug small programs](http://ericlippert.com/2014/03/05/how-to-debug-small-programs/) – Tomerikoo Sep 27 '20 at 14:34

1 Answers1

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referring this , Python can't multiply sequence by non-int of type 'float'

[np.log(S0/K)+(mu-0.5*(sigma**2))*T]

this gives an array.

So change it to

(np.log(S0/K)+(mu-0.5*(sigma**2))*T)
Sandrin Joy
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