Payoff diagram financial definition of Payoff diagram
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Payoff diagram
Payoff diagram
In
option
pricing, a graph of the value of the option
position
at
expiration
as a function of the
underlying asset
price.
Copyright © 2012,
Campbell R. Harvey
. All Rights Reserved.
Mentioned in
?
butterfly spread
Condor
References in periodicals archive
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Textbook presentations have relied on two types of option diagrams:
payoff diagrams
and profit diagrams.
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