Payoff diagram for a short put option
Author: informpskov Date: 23.05.2017
To log in and use all the features of Khan Academy, please enable JavaScript in your browser. Using a graph setting of Payoff All and setting instruments C and D to blank will only show positions A and B on the graph assuming A and B are set to Call , Put , Stock , or Bond. The maximum profit the investor can make is the premium received for writing the option, which will occur if the share price at expiry is above the strike price...