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Plot the payoff diagrams

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Plot the payoff diagrams fur the following instruments:
(a) A caplet with cap rate Rcap = 6.75% written on 3-wonth Libor Lt, that is about to expire.
(b) A forward contract written on a default-free discount bond with maturity 2 years. The forward contract expires in 3 months. The contracted price is 895.
(c) A 3 by 6 FRA contract that pays the fixed 3-month rate, F, against Libor.
(d) A fixed payer interest rate swap with swap rate k = 7.5%. The swap has maturity 2 years and receives 6-month Libor. Start date was exactly 6 months ago.
(e) A swaption that expires in 6 months on a 2-year fixed payer swap with swap rate k = .6%.

Reference no: EM131105070

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