Forex Option Profit Calculator
Calculate one long or short currency call or put result at expiry from an entered strike, expiry spot, premium per base unit, direct base-currency notional and transaction cost. The page separates intrinsic value, premium and net profit without estimating the option before expiry.
Enter one option payoff at expiry
Use quote currency per one base currency. Enter the premium on the same per-base-unit convention as the rate, plus any separate total quote-currency cost.
Entered expiry profit result
Entered FX Option Planning 1.0.0
On smaller screens, scroll horizontally to inspect the audit notes.
| Audit item | Entered or derived basis |
|---|
How currency-option profit at expiry is calculated
A call gives its holder the right to buy the base currency at the strike, while a put gives the holder the right to sell the base currency at the strike. With the page convention of quote currency per one base currency, a call has intrinsic value when expiry spot is above strike and a put has intrinsic value when expiry spot is below strike.
Long and short positions reverse the option-leg payoff but transaction cost always reduces the result. A long holder pays the entered premium and receives any intrinsic value. A short writer receives the premium and owes the intrinsic value, subject to actual exercise, assignment, settlement and margin rules that this arithmetic does not model.
The premium input is quote currency per one base-currency unit. Total premium equals that rate multiplied by the direct base-currency notional. The page deliberately avoids a universal equity-style 100-share multiplier, a 100,000-unit forex lot or a CME contract size because currency-option products use contract-specific notionals and deliverables.
Break-even includes the entered transaction cost allocated across the entered notional. For a long call it is strike plus premium plus cost per base unit; for a long put it is strike minus premium minus cost per base unit. Short-position break-even reverses the cost adjustment because cost reduces the premium retained by the writer.
At expiry, time value has fallen to zero and intrinsic value controls this narrow scenario. Before expiry, an option can have positive time value even when it is out of the money. This calculator therefore must not be used as a mark-to-market estimator before the specified expiry instant.
The maximum-outcome labels are mathematical properties of this simplified expiry function. A long call and a short call have an unbounded side because the entered spot has no model cap. A put is bounded by a zero spot assumption, but real losses, margin calls, exercise handling and settlement can occur before that endpoint.
Worked example from the audited fixture
The audited fixture enters a long EUR call with EUR 100,000 notional, USD 1.10000 strike, USD 1.15000 expiry spot, USD 0.02000 premium per EUR and USD 100 entered transaction cost.
- Call intrinsic value is USD 0.05000000 per EUR, or USD 5,000.00 in total. Entered premium is USD 2,000.00 and the separate cost is USD 100.00.
- Net expiry profit is USD 2,900.00, the cost-adjusted break-even rate is 1.12100000 and maximum modeled loss for this long call is the USD 2,100.00 premium-plus-cost outlay.
Reproduce it: select “Load audited example” above. The immutable fixture is recomputed from the disclosed equation rather than copied from a provider result.
How to interpret the result
- Read net profit or loss as the value at exactly the entered expiry spot under the entered premium and cost. It is not a probability-weighted return, expected profit or price forecast.
- Confirm whether the real position is long or short and call or put. Selecting the wrong side can preserve plausible intrinsic arithmetic while reversing the economic result.
- Verify premium currency and quotation. Some products quote premium as a rate, percentage, volatility or total cash amount; translate only from a confirmed contract specification.
- Treat break-even as an expiry threshold under the entered cost, not an instruction to exercise, hold or close. Before expiry, time value and execution prices can produce a different economic break-even.
- For a short option, an unbounded or substantial loss label is not a margin estimate. Required collateral, liquidation and assignment exposure depend on the provider and account.
- Use the Currency Option Pricing Calculator only when you need a theoretical model premium. This profit route intentionally accepts the premium as entered data and does not reprice it.
Assumptions and limits
- No live option chain, premium, spot, volatility, rate, account, margin, position, order, exercise, assignment or settlement record is connected.
- The calculation applies at expiry only. Before-expiry time value, volatility, rates, dividends or yields, early exercise and secondary-market closeout are excluded.
- Cash versus physical settlement, automatic-exercise thresholds, expiry cut, fixing source, deliverable, premium currency and contract multiplier are not inferred.
- The entered transaction cost is one total quote-currency amount. Spread, commission, exercise, assignment, conversion, funding, tax and slippage not entered remain excluded.
- Maximum outcomes are simplified mathematical boundaries. They are not broker margin, collateral, liquidation, suitability or loss-limit determinations.
- No option, premium, strike, expiry spot, position side, provider, broker, exercise, closeout, strategy, signal or trade is recommended.
Which currency-option calculator answers which question?
These pages share one governed visual shell but preserve three decisions. The pricing calculator applies an entered theoretical model, the profit calculator audits one entered option position at expiry, and the hedge calculator applies a purchased option to one payable or receivable scenario. Separating them prevents a model premium from becoming an executable quote, an expiry payoff from becoming a before-expiry price, or a scenario benefit from becoming an optimal hedge claim.
| Tool | Primary input | Primary output | Hard boundary |
|---|---|---|---|
| Option Pricing | Spot, strike, two rates, volatility and time | Theoretical European premium and sensitivities | No live quote or implied-volatility discovery |
| Option Profit | Position, strike, premium and expiry spot | One long or short expiry payoff | No before-expiry mark or probability |
| Option Hedge | Exposure, hedge share, strike, spot and premium | One purchased-option exposure scenario | No optimal strike or hedge decision |
Frequently asked questions
- It calculates call or put intrinsic value at the entered expiry spot, multiplies by direct base-currency notional, then applies the long or short premium direction and entered cost.
- Intrinsic payoff is the option value before premium and entered cost. Net profit or loss includes both the premium cash amount and the separate cost.
- A long call uses strike plus premium per base unit plus cost per unit. A short call uses strike plus premium minus cost per unit because cost reduces premium retained.
- A long put uses strike minus premium and cost per unit. A short put uses strike minus premium plus cost per unit.
- No. It uses expiry intrinsic value only and omits remaining time value, volatility, rates, early exercise and secondary-market closeout.
- None. Enter the direct base-currency notional after checking the actual contract multiplier, deliverable and premium quotation.
- No. It is a mathematical expiry boundary for the entered short call. Margin, collateral, liquidation and assignment handling depend on the provider and account.
- No. The expiry spot is a user-entered scenario with no probability. The page provides no expected return, forecast, strategy grade or recommendation.
Sources and methodology
- Options Industry Council — Options Basics — Reference for call and put rights, writer obligations, premium and asymmetric loss boundaries.
- CME Group — Listed FX Options — FX-specific reference for premium per base unit, direct contract notional and call/put currency rights.
- Bank for International Settlements — OTC FX Turnover 2025 — Primary market reference confirming FX options as a distinct hedging and speculative instrument class.
Version 1.0.0 performs deterministic local arithmetic and uploads no entered value. Sources define option pricing, premium, contract and market boundaries; they do not verify an input, volatility, rate, premium, contract, provider quote, exercise, settlement or result.
Separate expiry payoff from pricing and hedge planning
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