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chapter 11 payoff of options contracts in the previous video we have gone through the introduction of options have gone through the definitions of call and put options as well as different kinds of options in this video we are going to see the payoff of options contracts so as we were discussing in our previous videos about the payoff of futures contracts here payoff means the profit and loss that is determined by a particular contract so we are going to see different kinds of payoffs our profit and loss of options contracts theyre basically different kinds of players and options contracts in futures contract is very simple a buyer and seller but here therefore parties the first one is the buyer of call option and the opposite party who has is writer of call option here writer means seller of call option means in an option contract there are two parties one is a person who buys the right another person who sells the right so call option as we discussed in the previous video he is the