Let's implement this calculation in Python. A call option payoff depends on stock price: a long call is profitable above the breakeven point (strike price plus option premium).A payoff diagram can help you visualize your risk and rewards at different stock prices at expiration. For an average strike put, the payoff is the average price (strike) less the underlying's price at expiry. The payoff formula is: Short call payoff per share = (premium per share - (MAX (0, (share price - strike price)). In the payoff diagram, a butterfly is long one 45 call, short two 50 calls and long one 55 call. Andout option is a type of exotic option known as a barrier option. These options define the payout conditions based on whether the price falls enough. So from my understanding it will still be better to sell the call option before the dividend payment as the payoff is St−K plus the time value. Calculating Debt Payoff.