The slope of the line segment connecting these points is the (negative) average price that the trade is executed at:
13
Expression 14: "y" equals negative "p" Subscript, "e" "x" "e" "c" "u" "t" "i" "o" "n" , Baseline "x" plus "y" Subscript, "s" "t" "a" "r" "t" , Baseline plus "y" Subscript, "e" "n" "d" , Baseline left brace, "x" Subscript, "l" "o" "w" , Baseline less than or equal to "x" less than or equal to "x" Subscript, "h" "i" "g" "h" , Baseline , right bracey=−pexecutionx+ystart+yendxlow≤x≤xhigh
14
For infinitesimally small trades, the price is the slope of the tangent line at that point.
15
Expression 16: "y" equals negative "p" Subscript, "s" "t" "a" "r" "t" , Baseline times "x" plus 2 "y" Subscript, "s" "t" "a" "r" "t" , Baseliney=−pstart·x+2ystart
16
Expression 17: "y" equals negative "p" Subscript, "e" "n" "d" , Baseline "x" plus 2 "y" Subscript, "e" "n" "d" , Baseliney=−pendx+2yend
17
Calculations
Hide this folder from students.
18
Other labels
Hide this folder from students.
45
Execution price: ${p_executiontruncated} left parenthesis, StartFraction, "x" Subscript, "e" "n" "d" , Baseline minus "x" Subscript, "s" "t" "a" "r" "t" , Baseline Over 2 , EndFraction plus "x" Subscript, "s" "t" "a" "r" "t" , Baseline , StartFraction, "y" Subscript, "e" "n" "d" , Baseline minus "y" Subscript, "s" "t" "a" "r" "t" , Baseline Over 2 , EndFraction plus "y" Subscript, "s" "t" "a" "r" "t" , Baseline , right parenthesisxend−xstart2+xstart,yend−ystart2+ystart
Label:
equals=
left parenthesis, 116.8 9 8 5 8 8 , 116.7 0 0 7 9 , right parenthesis116.898588,116.70079
46
X in: ${x_{in}} left parenthesis, "x" Subscript, "s" "t" "a" "r" "t" , Baseline plus StartFraction, "x" Subscript, "i" "n" , Baseline Over 2 , EndFraction , "y" Subscript, "s" "t" "a" "r" "t" , Baseline , right parenthesisxstart+xin2,ystart
Label:
equals=
left parenthesis, 116.8 9 8 1 7 5 , 177 , right parenthesis116.898175,177
47
X out: ${x_{out}} left parenthesis, "x" Subscript, "s" "t" "a" "r" "t" , Baseline minus StartFraction, "x" Subscript, "o" "u" "t" , Baseline Over 2 , EndFraction , "y" Subscript, "s" "t" "a" "r" "t" , Baseline , right parenthesisxstart−xout2,ystart
Label:
undefined
48
Y in: ${y_{in}} left parenthesis, "x" Subscript, "e" "n" "d" , Baseline , "y" Subscript, "s" "t" "a" "r" "t" , Baseline plus StartFraction, "y" Subscript, "i" "n" , Baseline Over 2 , EndFraction , right parenthesisxend,ystart+yin2
Label:
undefined
49
Y out: ${y_{out}} left parenthesis, "x" Subscript, "e" "n" "d" , Baseline , "y" Subscript, "s" "t" "a" "r" "t" , Baseline minus StartFraction, "y" Subscript, "o" "u" "t" , Baseline Over 2 , EndFraction , right parenthesisxend,ystart−yout2
Label:
equals=
left parenthesis, 177.3 , 116.7 0 1 , right parenthesis177.3,116.701
