Graph Contact Contract मुफ़्त में

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Graph Contact Contract: make editing documents online a breeze

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Call payoff per share = (MAX (stock price — strike price, 0) — premium per share) Put payoff per share = (MAX (strike price — stock price, 0) — premium per share)
Profit. To calculate profits or losses on a call option use the following simple formula: Call Option Profit/Loss = Stock Price at Expiration Breakeven Point.
Maximum Profit = Unlimited. Profit Achieved When Price of Underlying >= Strike Price of Long Call + Premium Paid. Profit = Price of Underlying — Strike Price of Long Call — Premium Paid.
Selling Calls The purchaser of a call option pays a premium to the writer for the right to buy the underlying at an agreed upon price in the event that the price of the asset is above the strike price. In this case, the option seller would get to keep the premium if the price closed below the strike price.
Call options are in the money when the stock price is above the strike price at expiration. The call owner can exercise the option, putting up cash to buy the stock at the strike price. Or the owner can simply sell the option at its fair market value to another buyer.
Call Option Payoff Above the strike price of $100, the payoff of the option is $1 for every $1 appreciation of the underlying. If the stock falls below the strike price at expiration, the option expires worthless. Therefore, a call option has unlimited upside potential, but limited downside.
A long call option's payoff chart is a straight line between zero and strike price and the payoff is a loss equal to the option's initial cost.
A Payoff diagram is a graphical representation of the potential outcomes of a strategy. The vertical axis of the diagram reflects profits or losses on option expiration day resulting from particular strategy, while the horizontal axis reflects the underlying asset price on option expiration day.

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