% 
% Written by:
% -- 
% John L. Weatherwax                2006-12-31
% 
% email: wax@alum.mit.edu
% 
% Please send comments and especially bug reports to the
% above email address.
% 
%-----

clc; 
close all; 

E1 = 2.5;
E2 = 5.6; 

S  = linspace(1.0,10)'; 
V  = zeros(1,length(S)); 
indLT = find( S < E1 ); 
V(indLT) = -(E1-S(indLT)); 
indGT = find( S > E2 ); 
V(indGT) = S(indGT)-E2; 

figure; plot( S, V, 'o' ); grid on; 
xlabel('stock price at expiry'); ylabel('the value of a range forward contract');
title( 'the payoff for a range forward contract' ); 
saveas( gcf, '../../WriteUp/Graphics/Chapter6/prob_6_12', 'epsc' );