Basics Buy Call

InputsBuy or Sell: 1 = Buy, -1 = Sell 1Option Type: 1=Call, 2=Put 1Exercise Price $40.00Option Price $5.00

OutputsStock Price At Maturity $0.00 $8.00 $16.00 $24.00 $32.00 $40.00 $48.00Option Payoff $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $8.00Option Profit -$5.00 -$5.00 -$5.00 -$5.00 -$5.00 -$5.00 $3.00

OPTION PAYOFFS AND PROFITS

$0 $10 $20 $30 $40 $50 $60 $70 $80-$40

-$20

$0

$20

$40

Option Payoffs and Profits

Stock Price At Maturity

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$56.00 $64.00 $72.00 $80.00$16.00 $24.00 $32.00 $40.00$11.00 $19.00 $27.00 $35.00

$60 $70 $80

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