Single-Option Payoffs

The Call Payoff

A call payoff is zero below strike and rises linearly above.

highlighted = computed this step

Long-call payoff

A long call is a right, not an obligation, to buy at strike. At $80.00 and at $100.00 payoff is $0.00; at $120.00 payoff is $20.00.

payoff(S)=max⁡(S−K,0)\text{payoff}(S)=\max(S-K,0)
Long call, K=$100Payoff at expiry.Long call, K=$100K=$100$80$100$120$-2.00$+0.00$+22.00Underlying price at expiryPayoff

Payoff convention

This chart is at expiry and models pure payoff shape only: no premium, fees, or path effects. A long call gives upside participation above the strike and no downside beyond zero payoff.

payoff(K=$100.00)\text{payoff}(K{=} \$100.00)
Long call, K=$100Payoff at expiry.Long call, K=$100K=$100$80$100$120$-2.00$+0.00$+22.00Underlying price at expiryPayoff