Calculate potential profit and loss for call and put options at various stock prices.
| Term | Definition |
|---|---|
| Call Option | Right to buy shares at strike price; profits when stock rises |
| Put Option | Right to sell shares at strike price; profits when stock falls |
| Strike Price | Price at which option can be exercised |
| Premium | Cost to purchase the option contract |
| ITM (In The Money) | Call: Stock > Strike | Put: Stock < Strike |
| OTM (Out of Money) | Call: Stock < Strike | Put: Stock > Strike |
| ATM (At The Money) | Stock price equals strike price |
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