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Building a Payoff Diagram in R

Holger von Jouanne-Diedrich builds out payoff diagrams:

Not many people understand the financial alchemy of modern financial investment vehicles, like hedge funds, that often use sophisticated trading strategies. But everybody understands the meaning of rising and falling markets. Why not simply translate one into the other?

If you want to get your hands on a simple R script that creates an easy-to-understand plot (a profit & loss profile or payoff diagram) out of any price series, read on!

Click through for several examples of code and financial instruments.