Draw the payoff curves of a Call Option and Put Option

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Payoff curves of a Call Option and Put Option

A Call Option gives the holder the right to buy an underlying asset at a specified price (strike price) on or before a specified date (expiration date)
The payoff of a Call Option is positive when the price of the underlying asset is higher than the strike price
The payoff of a Call Option is limited to the premium paid for the option
A Put Option gives the holder the right to sell an underlying asset at a specified price (strike price) on or before a specified date (expiration date)
The payoff of a Put Option is positive when the price of the underlying asset is lower than the strike price
The payoff of a Put Option is limited to the premium paid for the option
Payoff curves for both options are linear until the strike price is reached, after which they become flat

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