A hypothetical option payoff

An educational exercise describes a cash-settled call option with exercise price one hundred units and premium six units. At expiry the underlying price is one hundred and fifteen units. The contract multiplier is one and transaction costs are ignored. A learner reports fifteen units as the holder’s profit, while another assumes the premium is returned separately because the option ends in the money. No barrier, early exercise, margin or tax complication is included in the exercise. A Korean fund adviser is using this simplified example to explain the difference between a derivative payoff and the investor’s net result, not to recommend an option trade or establish a real fund’s regulatory classification.