max (0, -max (K-5, 5-3K)), where Ks 10 is the strike price and is the price of the underlying stock of wer questions #3 and 14 A derivative security of European style with expiration in 1 year has this payoff: expiration. The stock currently trades at 25, and the following prices for European calls on the stock or known (all expiring in 1 yeor): Strike Price 10 15.39 20 30 1.65 3. Draw the graph of the payoff as a function of S. (Hint: Start with drawing the graphs of (K-S and of 6.47 (S -3K) in a scrap page and see how you understand the inner max function from there. A negative "max" means you flip the "max" function over x-axis. The proceed to solve the problem.) 11