In this video, we break down the fundamentals of options in finance with an emphasis on solving exam-like questions. The focus is on understanding call and put options, their payoff, and how to graph them. Using a scenario with Tesla stock, the video demonstrates step-by-step how to calculate and draw payoff tables and diagrams, showing how different stock prices impact the payoff of a call option (strike price $32) and a put option (strike price $42). By following these simple steps, students will learn how to easily solve these types of questions on exams.