A put payoff diagram explains the profit/loss from the put option on expiration and the breakeven point of the transaction. It's a pictorial representation of the possible results of your action (of buying a Put).
Payoff profile. The slope of a line graphed ing to the value of an underlying asset on the x-axis and the value of a position taken to hedge against risk exposure on the y-axis. Also used with changes in value. See: Risk profile.
A put payoff diagram is a way of visualizing the value of a put option at expiration based on the value of the underlying stock.
The payoff function is a function u i : S 1 × S 2 × ⋯ S m → R .
And that's the payoff of that player in the mixed strategy Nash equilibrium. So let's see this inMoreAnd that's the payoff of that player in the mixed strategy Nash equilibrium. So let's see this in action with Battle of the Sexes starting with finding the probability of each outcome.
Let xt be a random variable representing the time-t value of a risk factor, and let f(xT) be a function that indicates the payoff of an arbitrary instrument at “maturity” date T, given the value of xT at time T > t. We call f(xT) a payoff function.
A 'payoff function' in the context of Computer Science refers to a utility function that assigns a numerical value to each possible action in a decision-making process. The higher the value, the more favorable the action is for the player.