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Hope to get the respond as soon as possible:) This is one of my homework and I have to handle it today. Please draw a
Hope to get the respond as soon as possible:)
This is one of my homework and I have to handle it today.
Please draw a payoff chart of the following product based on the following information.
Strike price = 80% of the initial price (assume PR is 70%)
Maturity Amount:
If the Final Price is above the Strike Price,
Maturity Amount = Investment Amount*(1+PR*MAX[0,(1-final price/initial price)])
If the Final Price is at or below the Strike Price,
Maturity Amount = Investment Amount*(1+PR*MAX[0,(1-strike price/initial price)])
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