Tarun Kehair:

Price of the underlying

stock at time "t"
CALL St
Option to Buy 147
125
St 147 126
127
X 144 128
Tarun Kehair: 129
Exercise Price OP 1 130
131
132
Option Gain 3 133
134
Less: Premium 1 135
136
Net Gain 2 137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
Call Option 155
30 156
157
25 158
159
20
160
15 161
162
10 163
164
5
165
0 166
0 5 10 15 20 25 30 35 40 45 50
-5
10

0
0 5 10 15 20 25 30 35 40 45 50
167
-5 168
169
Net Gain G/L
2
-1
-1
-1
-1
-1
-1
-1
-1 Max Loss Option Premium
-1
-1 Max Gain Unlimited
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Tarun Kehair:
Price of the underlying
stock at time "t"
PUT St
Option to Sell 144
125
St 144 126
127
Tarun Kehair: X 147 128
Exercise Price 129
OP 1 130
131
132
Option Gain 3 133
134
Less: Premium 1 135
136
Net Gain 2 137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
Put Option 155
156
25
157
158
20
159
160
15
161
162
10
163
5
164
165
0 166
0 5 10 15 20 25 30 35 40 45 50

-5
5

0
0 5 10 15 20 25 30 35 40 45 50 167
-5 168
169
Net Gain G/L
2
21
20
19
18
17
16
15
14 Max Loss Option Premium
13
12 Max Gain X - OP
11
10
9
8
7
6
5
4
3
2
1
0
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1
-1