where cells C4 and C6 are strike price and underlying price, respectively. In our example, the formula in cell C8 will be: =MAX(C6-C4,0) It is very easy, because Excel has the MAX function, which takes a set of values (separated with commas) and returns the greatest of them. Now we need to implement this formula in Excel. If you don't understand why, see detailed explanation and examples in Call Option Payoff Diagram, Formula and Logic.
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