- Underlying units represented
- 100
- Holder payoff per underlying unit
- 10
- Signed position payoff at expiry
- 1,000
- Signed premium cash flow at initiation
- -600
- Simple payoff-plus-premium profit
- 400
- Strike/premium profit boundary
- 106
Expiry arithmetic only; premium is not accumulated or discounted. Funding, fees, taxes, early exercise, assignment and settlement rules are outside this model.
The horizontal axis varies hypothetical terminal underlying price. Premium and position size stay fixed; no probability or current option value is inferred. This is an illustrative example.
- Signed payoff
- Simple profit
View the chart values
| Series | Terminal underlying price | Position amount |
|---|---|---|
| Signed payoff | 0 | 0 |
| Signed payoff | 50 | 0 |
| Signed payoff | 100 | 0 |
| Signed payoff | 106 | 600 |
| Signed payoff | 110 | 1,000 |
| Signed payoff | 150 | 5,000 |
| Signed payoff | 200 | 10,000 |
| Simple profit | 0 | -600 |
| Simple profit | 50 | -600 |
| Simple profit | 100 | -600 |
| Simple profit | 106 | 0 |
| Simple profit | 110 | 400 |
| Simple profit | 150 | 4,400 |
| Simple profit | 200 | 9,400 |
On this page
Use per-underlying-unit inputs
Strike, premium and terminal price use the same currency per underlying unit. Contracts must be a positive whole number; units per contract is stated separately. Choose call or put and long or short. A blank terminal input is not treated as zero.
Read the original default
One long call with strike 100, premium 6, terminal price 110 and 100 units gives holder payoff 10 per unit, signed settlement 1,000, premium cash −600 and simple profit 400. The strike/premium boundary is 106.
Interpret the scenario plot
The chart varies hypothetical terminal price while premium and size stay fixed. It includes strike and supported boundary points to show the kinks. The finite axis range does not cap a theoretical loss or assign probability. The underlying values are available as an accessible table.
Keep the model at expiry
The tool does not price the option before expiry, estimate margin, finance premium, apply fees/taxes or model early exercise and assignment. A put premium exceeding strike has no nonnegative terminal-price profit boundary under this simple model; the invalid boundary is omitted.