Past exam of the Probability, statistics and options II course of the University of Oxford / 2011 / F / F2 / b / iv / Solution

Because $2|x|\le 1+x^2\le Q$, we have $|f_x(x,y)|=2|x|/Q^2\le 1/Q\le 1$; similarly $|f_y|\le 1$. Apply the one-variable mean value theorem on the horizontal and vertical segments joining $(x,y)$ to $(u,y)$ to $(u,v)$. The triangle inequality givesThus the function is globally one-Lipschitz for the ${\ell }^1$ metric on the plane.