Call and Put Option Payoff - Clean Edition 🎉

Call Option Payoff

Put Option Payoff

Understanding Call and Put Option Payoff

Call Option Payoff: The formula is: payoff = max(0, price - strike). The payoff is the difference between the market price and strike price if the market price is higher.

Put Option Payoff: The formula is: payoff = max(0, strike - price). The payoff is the difference between the strike price and the market price if the strike price is higher.

Watch the Bears Explain Call and Put Options