I am required to sketch a payoff function, as follows: I'm baffled. I've tried, a lot, but this confuses the heck outta me. Any kind souls who could give me some pointers?
Follow Math Help Forum on Facebook and Google+
the X axis will be S_t variable axis, the Y axis is the payoff plot two points on X axis: K_1, K_2 and consder tihe behaviour of S_t variable around these two points (before, in between, after)
View Tag Cloud