Payoff at expiry for the sale of a call option formula
Description of the Payoff at expiry for the sale of a call option formula
Formula for calculating the payoff of a short position in a call option.
Formula
\[ R_{sc}= P - min \left( \left( S_{T}-K \right),0 \right) \ \]
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
Related calculators
Option strategy calculator • Pricing of an option (Black & Scholes)