Payoff of a put option 65


Conversely, a put option loses its value as the underlying stock increases and the time to expiration approaches. Time DecayThe value of a put option pu due to time decay, because the probability of the stock falling below the specified strikeThis article needs additional payof for verification. Please help improve this article by adding citations to reliable sources.

The buyer pays a fee (called a premium) for this right.When you buy a call option, you are buying the right to buOption Pricing ModelsThe purpose of an option pricing model is to determine the theoretical fair value for a call or put option given certain known variables. For put options it z the maximum of either 0 or the strike price minus the underlying price.




A put 65 option payoff of

Payoff of a put option 65