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You are a structurer in a derivatives desk. The client is asking you to give them a price for the following payoff: g(ST ) =
You are a structurer in a derivatives desk. The client is asking you to give them a price for the following payoff: g(ST ) = 1ST >K K being a predetermined strike documented in the termsheet. 1. You only have access to a vanilla desk. In other words, your traders only know the prices of calls and puts. How are you going to go about this
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Principles of Economics
Authors: Fred M. Gottheil
7th edition
978-1133962069, 9781285064444, 1133962068, 1285064445, 978-1285064437
