LONG CALL - PAY OFF DIAGRAM LONG CALL OPTIONS - LOSS IS LIMITED TO THE PREMIUM PAI

U/L ASSET - PEN OR PENCIL AND PROFITS ARE UNLIMITED

MARKET PRICE STRIKE PRICE PREMIUM EXERCISE/EXPIRY PnL

80 100 10 EXPIRE (-) 10
90 100 10 EXPIRE (-) 10
100 100 10 EXPIRE (-) 10
110 100 10 EXERCISE 0
120 100 10 EXERCISE (+) 10
130 100 10 EXERCISE (+) 20
140 100 10 EXERCISE (+) 30
150 100 10 EXERCISE (+) 40
1000 100 10 EXERCISE (+) 890
CALCULATOR
10 PREMIUM
100 STRIKE PRICE
RULES FOR LC 110 TOTAL COST
BUY CALL OPTION CONTRACT 110 MARKET PRICE
PAY A PREMIUM 0
RIGHT TO BUY THE U/L ASSET
HOLDER OF THE CONTRACT

MKT PRICE > STRIKE PRICE - EXERCISE THE OPTION CONTRACT

MKT PRICE < STRIKE PRICE - EXPIRE THE OPTION CONTRACT
ED TO THE PREMIUM PAID

LONG CALL - PAY OFF DIAGRAM

B.E.P.
50
PROFIT
40

30

20

10

80 90 100 110 120 130 140

(-)10
LOSS MARKET PRICE
150
 SHORT CALL - PAY OFF DIAGRAM ZERO SUM GAME - IF I MAKE A PROFIT YOU MAK
U/L ASSET - PEN OR PENCIL IF YOU MAKE A PROFIT I MAKE A LOSS

MARKET PRICE STRIKE PRICE PREMIUM EXERCISE/EXPIRY PnL

80 100 10 EXPIRE (+) 10
90 100 10 EXPIRE (+) 10
100 100 10 EXPIRE (+) 10
110 100 10 EXERCISE 0
120 100 10 EXERCISE (-10)
130 100 10 EXERCISE (-20)
140 100 10 EXERCISE (-30)
150 100 10 EXERCISE (-40)
1000 100 10 EXERCISE (-890)
CALCULATOR
10 PREMIUM
100 STRIKE PRICE
RULES FOR SC 110 TOTAL COST
SELL CALL OPTION CONTRACT 110 MARKET PRICE
RECEIVE PREMIUM 0
OBLIGATION TO SELL U/L ASSET
WRITE OF THE CONTRACT
MAKE A PROFIT YOU MAKE A LOSS
MAKE A LOSS

SHORT CALL - PROFITS ARE LIMITED TO THE PREMIUM RECEIVED

LOSSES ARE UNLIMITED

B.E.P.
50
PROFIT
40

30

20

10

80 90 100 110 120 130 140

(-)10
LOSS MARKET PRICE
(-20)

(-30)

(-890)
M RECEIVED

150
 LONG PUT - PAY OFF DIAGRAM ZERO SUM GAME - IF I MAKE A PROFIT YOU MAK
U/L ASSET - PEN OR PENCIL IF YOU MAKE A PROFIT I MAKE A LOSS

MARKET PRICE STRIKE PRICE PREMIUM EXERCISE/EXPIRY PnL

0 100 10 EXERCISE 90
50 100 10 EXERCISE 40
60 100 10 EXERCISE 30
70 100 10 EXERCISE 20
80 100 10 EXERCISE 10
90 100 10 EXERCISE 0
100 100 10 EXPIRE (-) 10
110 100 10 EXPIRE (-) 10
120 100 10 EXPIRE (-) 10
130 100 10 EXPIRE (-) 10
140 100 10 EXPIRE (-) 10
150 100 10 EXPIRE (-) 10

CALCULATOR
10 PREMIUM
100 STRIKE PRICE
RULES FOR LP 90 TOTAL COST
BUY PUT OPTION CONTRACT 70 MARKET PRICE
PAY A PREMIUM 20
RIGHT TO SELL U/L ASSET
HOLDER OF THE CONTRACT

MARKET PRICE < STRIKE PRICE - EXERCISE THE OPTION CONTRACT

MARKET PRICE > STRIKE PRICE - EXPIRE THE OPTION CONTRACT
MAKE A PROFIT YOU MAKE A LOSS
MAKE A LOSS

90

80
LOSS ARE LIMITED TO THE PR
70 PROFITS ARE UNLIMITED (UP
B.E.P.
60

50
PROFIT
40

30

20

10

0 20 30 40 50 60 70
(-)10
LOSS
(-20)

(-30)

(-890)
LOSS ARE LIMITED TO THE PREMIUM PAID
PROFITS ARE UNLIMITED (UPTO ZERO)

80 90 100 110 120 130 140 150

MARKET PRICE
 LONG PUT - PAY OFF DIAGRAM ZERO SUM GAME - IF I MAKE A PROFIT YOU MAK
U/L ASSET - PEN OR PENCIL IF YOU MAKE A PROFIT I MAKE A LOSS

MARKET PRICE STRIKE PRICE PREMIUM EXERCISE/EXPIRY PnL

0 100 10 EXERCISE (-90)
50 100 10 EXERCISE (-40)
60 100 10 EXERCISE (-30)
70 100 10 EXERCISE (-20)
80 100 10 EXERCISE (-10)
90 100 10 EXERCISE 0
100 100 10 EXPIRE (+) 10
110 100 10 EXPIRE (+) 10
120 100 10 EXPIRE (+) 10
130 100 10 EXPIRE (+) 10
140 100 10 EXPIRE (+) 10
150 100 10 EXPIRE (+) 10

CALCULATOR
10 PREMIUM
100 STRIKE PRICE
RULES FOR LP 90 TOTAL COST
BUY PUT OPTION CONTRACT 70 MARKET PRICE
PAY A PREMIUM 20
RIGHT TO SELL U/L ASSET
HOLDER OF THE CONTRACT
MAKE A PROFIT YOU MAKE A LOSS
MAKE A LOSS

90

80

70 PROFITS ARE LIMITED TO PREMIUM RECEIVED

B.E.P. LOSSES ARE UNLIMITED (UPTO ZERO)
60

50
PROFIT
40

30

20

10

0 20 30 40 50 60 70
(-)10
LOSS
(-20)

(-30)

(-890)
IUM RECEIVED

80 90 100 110 120 130 140 150

MARKET PRICE