4. Replicate Figure 7.9. 0 4 Full Valuation -Delta Approximation -Gamma Approximation Portfolio Value do d -8

4. Replicate Figure 7.9.

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0 4 Full Valuation -Delta Approximation -Gamma Approximation Portfolio Value do d -8 -10 -12+ 85 90 95 100 105 110 115 Underlying Asset Price FIGURE 7.9 The Five Day Future Portfolio Values for the Three-Option Portfolio Using the Delta, Gamma and Full Valuation Methods Plotted against the Future Price of the Underlying Asset.