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Payoff at expiry for the purchase of a call option formula

Description of the Payoff at expiry for the purchase of a call option formula

Formula for calculating the payoff of a long position in a call option.

Formula

\[ R_{lc}=max\left((S_{T}-K),0\right ) - P \ \]

Symbols

\(K\ \)       
Option strike price
\(P\ \)       
Value of the option premium
\(S_{T}\ \)       
Price of the underlying at expiry date T of the option