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Lets think about the pay off diagram for just owning the stock or we can say going long the stock, which is really just owning it. If we think about just the underlying asset value and were talking about the value at some date and, you know, and traditionally were talking about some maturity date for some options, but the value at maturity but at some date we have in our mind. So if were thinking about just the value, if on that date the underlying stock price is 50, then the value of holding the stock is going to be 50. If the value of the underlying stock is 0, then the value of owning stock is going to be 0. If the value of the underlying stock is 70, then the value of the stock is going to be 70. So you just have this very simple line payoff diagram. Its just whatever the underlying stock price, that is the value of the asset because you just own the stock. If you think about it from a profit and loss point of view, you break even if on that day since youre paying $50 per s