Financial

Payoff diagram

In option pricing, a graph of the value of the option position at expiration as a function of the underlying asset price.

Mentioned in

butterfly spread
Condor

References in periodicals archive

Textbook presentations have relied on two types of option diagrams: payoff diagrams and profit diagrams.

Economics

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.