Figure 12.1. Call price as a function of the stock price
Figure 12.2. Hedge ratio of Black-Scholes call as the price of the stock changes
Figure 12.3. Performance of the delta hedge
Figure 12.4. Stock price paths. of a stock price that is lognormally distributed
Figure 12.5. Vega as a function of the stock price for a call option with exercise price of 50 and
a volatility of 20%
Figure 12.6. Price of put as a function of the stock price
Figure 12.7. Hedge ratio of put
Figure 12.8. Put price as a function of time to maturity and stock price
Figure 12.9. Typical smile before the crash of 1987
Figure 12.10. Typical smile after the crash of 1987