Notes:
When spot rate is higher than the strike price,
call option payoff = spot - strike, call option profit = payoff - premium
put option payoff = 0, put option profit = - premium
When spot rate is lower than the strike price,
call option payoff = 0, call option profit = - premium
put option payoff = strike - spot , put option profit = payoff - premium
To learn about payoff diagram, please check on this excel file
To learn about Black-scholes Model, please check on this excel file
(Thanks to Dr. Greene for allowing me to share the above files for educational purposes)
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