In this video, we walk through a step-by-step option strategy question that’s perfect for anyone studying finance or preparing for exams. We’ll start by exploring a scenario where two investors, Jake and Sarah, are building a portfolio using call and put options, alongside selling put options. The main focus is on understanding the payoff diagrams, calculating profits, and determining the payoff for each position. We’ll cover key concepts like options, strike prices, premiums, and the difference between buying and selling options. By the end, you’ll be ready to solve options-related exam questions with ease, using a payoff table to simplify complex calculations.