Question: Plot a diagram. R programming language. CashOrNothingOption = function(S, k, Time, r, q, sigma) { d1 = (log(S / k) + (r - q +
Plot a diagram. R programming language.
CashOrNothingOption = function(S, k, Time, r, q, sigma) {
d1 = (log(S / k) + (r - q + sigma ^ 2 / 2) * Time) / (sigma * sqrt(Time))
d2 = d1 - sigma * sqrt(Time)
if(k>S){
return (k * exp (-r * Time) * (-d2))
}else
print("zero")
}
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