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Confirm the price and quantity bases
A premium of 6 per unit and 100 units per contract imply 600 premium per contract. Do not enter a per-contract total into the per-unit field. Contracts and units per contract multiply the price difference once.
Distinguish holder and position amounts
Holder payoff per unit stays nonnegative for either side. Signed position settlement reverses for a writer, and premium cash also reverses. These separate rows make the side visible without changing the contract expression.
Interpret zero and absent boundaries
Positive-premium call and put crossings use K+premium and K−premium within the nonnegative-price domain. With zero premium, a whole region can have zero profit. If the put candidate is negative, no valid-domain crossing is shown.
| Row | Meaning |
|---|---|
| Holder payoff | Contract amount per unit |
| Signed settlement | Chosen side and quantity |
| Premium cash | Initiation direction |
| Simple profit | Unfinanced sum of dated cash movements |
Use algebra beyond the display
A finite plot is a presentation aid. A short call’s losses beyond its edge remain part of the model. Current option value, probability, funding and exercise mechanics require other inputs and are not inferred from the line.