Premium, payoff and profit: both sides of the trade

Calculate premium, payoff and profit for the buyer and the writer, and see why in the money can still lose.

Builds on Lesson 2, Options: a paid right with a deadline and Lesson 4, Risk first: how options lose money. Those lessons showed a call's value at expiry and a writer's open-ended loss; this one splits a price into intrinsic and time value, finds the break-even, and works out both sides' results.