Carlson, John B. (contributor); Craig, Ben R. (contributor); … - 2005
that finishes in the money, the pay-off is
the difference between the underlying asset’s price at expiration and the … strike price. If the call option
finishes out of the money, the pay-off is zero. For a put option that finishes in the … money, the pay-off is
the difference between the strike price and the underlying asset’s price at expiration. If the put …