In: Finance
You short a put with strike K. The underlying price at expiration is S. What's your payoff?
Group of answer choices
S - K if K > S, and zero otherwise.
0
K - S
S - K
What's the payoff at maturity to a long call with strike K and underlying asset price S?
Group of answer choices
max(S-K,0)
min(S-K,0)
max(K-S,0)
min(K-S,0)
What's the payoff at maturity to a long put with strike K and underlying asset price S?
Group of answer choices
max(K-S,0)
max(S-K,0)
min(S-K,0)
min(K-S,0)
What's the payoff at maturity to a short call with strike K and underlying asset price S?
Group of answer choices
both
-max(S-K,0)
min(K-S,0)
neither