A derivative security of

A derivative security of

A derivative security of European style with expiration in 1 year has this payoff: max(0, min(3K-S, S-K)), where K = 10 is the strike price and S is the price of the underlying stock at expiration. The stock currently trades at 25, and the following prices for European options on the stock are known (all expiring in 1 year).(a) Draw a graph of the payoff as a function of S(b) What is the 1 year interest rate r?(c) What is the price P of the derivative security?

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