Plot the payoff diagrams for the following instruments: (a) A caplet with cap rate Rcap = 6.75%

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Plot the payoff diagrams for the following instruments:
(a) A caplet with cap rate Rcap = 6.75% written on 3-month Libor Lt that is about to expire.
(b) A forward contract written on a default free discount bond with maturity 2 years. The forward contract expires in 3 months. The contracted price is 89.5.
(c) A 3 by 6 FRA contract that pays the fixed 3-month rate, F, against Libor.
(d) A fixed payer interest rate swap with swap rate κ = 7.5%. The swap has maturity 2 years and receives 6-month Libor. Start date was exactly 6 months ago.
(e) A swaption that expires in 6 months on a 2-year fixed-payer swap with swap rate κ = 0.6%. Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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