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Payoff at expiry for the purchase of a put option formula

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 Description of the Payoff at expiry for the purchase of a put option formula

Formula for calculating the payoff of a long position in a put option.

  Formula

\[ R_{lp}=max\left((K-S_{T}),0\right ) - P \ \]

 Symbols

\(K\ \)       
Option strike price
\(P\ \)       
Value of the option premium
\(S_{T}\ \)       
Price of the underlying at expiry date T of the option