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
Additional information related to this formula
Related definitions from the glossary of financial terms
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Option strategy calculator • Pricing of an option (Black & Scholes)