2. The following is the payoff diagram of a ratio spread on call options. Payoff...
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2. The following is the payoff diagram of a ratio spread on call options. Payoff K 2K S AK -2K Write down the payoff function of the ratio spread and deduce its composition (i.e., the number of long/short positions of the relevant call options). 2. The following is the payoff diagram of a ratio spread on call options. Payoff K 2K S AK -2K Write down the payoff function of the ratio spread and deduce its composition (i.e., the number of long/short positions of the relevant call options)
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