What is the best way to deal with such questions? I'm first plotting how I think the delta (or others) will look for each and every option independently at a range of strike prices and summing them up, but I end up second guessing the final result at certain strike prices every time since this process is rather intuitive. Is there an alternative way to go about this?
This sounds like a good approach and should give a suffieciently accurate graph in a reasonable amount of time. Where you're asked for more than one graph, it might save time to note that a delta graph is just the derivative (ie gradient) of the value graph and that a gamma graph is just the derivative of the delta graph.
I think this approach is really only best for portfolios containing different maturities, or for greeks other than delta and gamma. Easier to just smooth the payoff and visually differentiate.
I've been trying out questions involving sketching greeks for Exotic Options e.g Barrier Options and Combinations such as Butterflies. See ACiD, April_2003, q2 (ii). However, I am really bad at these kind of questions, I don't remember getting close to the model solutions or at-least understanding what they are doing. I will appreciate your help.
Gotten better at graphing the greeks of Exotic Options and Option Strategies "EXCEPT FOR A BARRIER''?! Here's a place to check your Greeks;- http://www.deltaquants.com/option-strategies.html
