In this video, we'll walk you through creating a comprehensive payoff table and payoff diagram for option pricing scenarios, using clear step-by-step guidance. You'll learn how to structure your analysis with positions, stock prices, and payoffs, as well as how to apply techniques like "Min + Max" and "Min × 2" to determine price ranges for simulation. We’ll also show you how to calculate payoffs for buying and selling calls and puts, and how to visualize these results on a payoff diagram. Perfect for students tackling options in finance courses!